Escape from the Bubble: Housing Trends Since 2008
Independent mortgage lenders have helped stir home buying.
When the housing market bubble burst in 2006 and 2007, it brought down the entire U.S. economy. People lost their houses, their savings and their dreams. The U.S. Government bailed out several financial institutions deemed “too big to fail,” but everyone suffered. Echoes of the crisis reverberated throughout the world.
Since 2008, the housing market has experienced its share of bad news and worse press. Housing prices continued to fall, as banks tightened their grips on loans. As a result, they issued fewer mortgages, which caused a glut of homes on the market, further driving down prices.
Home Prices Hit Bottom
Homes prices continued to spiral downward. The American Recovery and Reinvestment Act of 2009, a stimulus program aimed at improving the country’ economy, helped a little, but it took several years for the effect to be felt. During that time, prices dropped low enough to change the housing market into a buyer’s market.
Home prices reached bottom in 2012, after five long years of hardship. The low prices encouraged those with the means to buy at value. For the rest of the country, getting a mortgage still proved difficult, even as housing prices stabilized.
Independent Mortgage Lenders Arrive to Help
With banks continuing to deny mortgage loans, independent mortgage lenders like GoPrime Mortgage, Inc. . took advantage of the situation by offering competitive mortgages. Qualified homebuyers who were turned down by traditional banks turned to the independent lenders, which helped them pounce on good values.
Founded earlier, in 2005, GoPrime Mortgage, Inc. . grew fast during the recession, becoming an important player in the mortgage market. Independent mortgage lenders have to follow the same rules and regulations as the big banks, but they found ways to issue mortgages that the banks were denying. Independent mortgage lenders helped stir the economy by allowing people to buy homes after the “crash.”
Return to Normal
Since 2012, home buying gradually gained momentum, fueling sales as the economy improved. Today, in 2015, home prices in many areas are back to their pre-2007 levels, and home buying has returned to its vigorous rate, changing the market back to a seller’s market. Now, this rebirth doesn’t hold true for every part of the country, but it is true in the Bay Area and in North Carolina. The real estate market in these areas is booming once again.
Check with your local independent mortgage lender, like Prime Mortgage Lending of West Asheville, to pre-qualify for a mortgage. Independents can work with you to find the best terms, and you get more personalized service than you might at a big bank. Prime and other independent lenders helped bring the country out of the recession, so stick with what works and get your mortgage from Prime Mortgage Lending.
Contact Zack Adam of Prime Mortgage Lending of West Asheville for information about current rates and what rate you qualify for. With housing prices soaring once again, every day you delay may cost you thousands. Independent mortgage lenders are waiting to help you buy your next home.