[quote=briansd1][quote=ocrenter]not so much slow and steady, but more of small waves of up and down, without significant increase upward.
I really should back up and say the decade I’m referring to started in 2008, so more or less half way through.[/quote]
I agree with OC renter.
Loans are harder to qualify for because of stricter underwriting. The higher-end will be affected more.[/quote]
It’s all about Credit (well OK Jobs too),
This (below) is the switch I think will get thrown (out) eventually, it makes no sense at this point in time.
I think the lenders will go back to `10% and maybe even 5% downs and still offer low rates once things show stability
(If we let them)
Right now it is like pulling teeth
Regulators are now fleshing out the QRM definition, and propose requiring 20% down payments from borrowers. Since the down payment is generally lost in a foreclosure, that would give homeowners a strong incentive to keep making payments even if they run into financial trouble. A smaller loan relative to the property’s value also makes it easier for the lender to recover the debt in a foreclosure.
Right now, most borrowers put at least 20% down, because lenders are still pretty nervous. But experts have generally thought the market would gradually return to normal, allowing down payments of only 5% or 10%.
If the QRM designation does end up requiring 20% down payments, that will likely become standard across the board, since lenders would want to be exempt from the rule requiring they keep 5% of the securities they create. The retention rule would expose them to risk and tie up money they might prefer to use in other ways.
A 20% down payment is a tough hurdle for first-time home buyers, but it can also be a problem for homeowners who want to trade up. In the past, most homeowners have counted on equity in the current home to cover the down payment on the next. But sinking home values in the past few years have left nearly half of homeowners with mortgages that have equity less than 20%. (About a third of homeowners have no mortgage debt at all.)
Bottom line: Even if you have owned a home for years, you might have to dig into other savings to make the down payment the next time you move.
The QRM rules are still being debated, and many lenders and consumer groups oppose the 20% rule, so things could change.
