Since the refinance boom of 2003 and 2004, the numbers of conventional refinance mortgages has steadily declined in Harris County, Texas. The number of conventional purchase mortgages have remained static while more recently, FHA/VA mortgages have started to increase. Why have these government issued mortgages become more popular? According to the FHA it is now easier to qualify, it costs less, they have low down payments, and you can have less than perfect credit. The decline in conventional mortgages suggests that these types of mortgages are more difficult to obtain. In Harris County will FHA and VA mortgages dominate in market share?
2 comments:
This is very interesting. I never knew government issued mortages are becoming more popular. Now that I think about it, I can see why. Perhaps people feel as though government issued mortages are more stable and secure. That is heaven though, easier to qualify, low down payments, and less than perfect credit, no wonder why it's more popular. The graph is awesome too, it cleary shows the patterns and is very convincing. I do think that FHA and VA mortages will dominate the market share because of this reason. Eventually, government mortages will be the way to go and the market will flurish.
Are things in Houston that bad??? I thought things were going good there!
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