january mortgage lender

If anyone involved in Metairie real estate were to try to pick a word to characterize the mortgage industry as a whole, “sentimental” wouldn’t be among them. Especially over the past several years, “frustrated” might be apt, or “hog-tied.” Mortgage issuers been hampered by tough rules developed in reaction to the sub-prime mortgage mess. They certainly wanted to issue more mortgages, if only for their own profitability, but until recently, the lending guidelines made that difficult.

In any case, this is an industry that relies on hard facts and statistics to govern lending decisions. Mortgage industry leaders are therefore not inclined to be overly optimistic, overly pessimistic—nor are they prone to exaggeration in their public pronouncements.

So when the powers-that-be at Fannie Mae come out each quarter with their Mortgage Lender Sentiment Survey, the “sentiment” is not the Cry Me a River or You Are the Sunshine of My Life variety. This “sentiment” describes how real estate lenders (presumably including some Metairie mortgage companies) feel about mortgage business prospects in the coming months. The actual report has a remarkable record of a lack of sentiment: it’s usually pretty much on target.

So it is that when the 2015 first quarter Survey appeared last month (this is one real estate report whose ‘first quarter’ paper actually appears in the first quarter), it sounded another positive note in the assemblage of springtime real estate projections. The summary talked about “an improving outlook among mortgage lenders” because those surveyed “expect mortgage demand…to grow over the next three months.” The hard number was 71% having that expectation, which wouldn’t be surprising, given our entry into the busy spring selling season. The optimism drew more from the fact that this is a substantial improvement compared with the same quarter last year (71% vs. the previous 59%).

If the growth they anticipate holds true for our own market, it wouldn’t just indicate improving activity for Metairie home buyers and sellers. After what they viewed as an “uneven” 2014, Fannie Mae’s Chief Economist Doug Duncan said the results were “consistent with our view that an improving economy, strengthening employment, and increasing consumer confidence” pointed to the more cheerful outlook.

Also cheerful was the picture mortgage issuers expected for their own well-being. A year ago, lenders who thought their profitability would increase were in the extreme minority: 21%. This year, the size of the optimistic group doubled.

Local mortgage applicants could find good news in one more of the reasons for the expectation for mortgage demand to grow over the next three months. The report talked about how last year’s credit tightening was continuing to “trend down.” And there at the top was the headline which mentioned “Gradual Credit Easing.” For anyone who had found it hard to qualify under last year’s rules, that’s very welcome news.

If you will be buying or selling anytime soon, I hope you’ll give me a call: the sentiment here is also the green light kind!

Terez B. Harris (504)975-1033

Our city has so much beautiful culture to offer… Love our city, New Orleans.

Questions about Buying or Selling a Home? Give me a call! Terez B. Harris (504)297-2619

Terez B. Harris

Terez Harris NOLA Realtor Group

(504)297-2619

www.TerezHarris.com

TerezHarris@kw.com

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Terez B. Harris Terez Harris NOLA Realtor Group 504-297-2619 www.TerezHarris.com

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New Orleans Area homeowners could benefit if the influx of international home buyers continues to expand. According to a study from the National Association Realtors^®, the trend in that direction has been accelerating. In the most recent release covering the twelve-month period ending last March, foreign nationals are reported to have spent more than $92 billion in the United States for the year.

That’s growth at a blistering pace: an increase of 35% over the $68 billion spent in 2012!

How New Orleans Area homeowners stand to benefit from the increase in foreign buyers has a lot to do with today’s changing real estate marketplace. Since international home buyers need to learn as much as possible about a property from afar, the improvements in online presentation serve a very necessary purpose. When one of our New Orleans Area listings includes an extensive selection of photos or video footage, it becomes a legitimate part of the emerging international marketplace. Combined with today’s easy-to-navigate links to detailed information about the New Orleans Area’s neighborhoods and local amenities, a local property is realistically accessible to buyers from anywhere in the world.

Last year’s foreign sales were split almost equally between foreign buyers whose primary residence is outside the country and those currently living here. Not surprisingly, the greatest number of sales—19%—came from Canadian nationals, closely followed by the Chinese (16%) and Mexicans (9%). Both Indian and United Kingdom nationals weighed in with 5% of 2014’s purchases, while lesser percentages of international home buyers hailed from Germany, followed by the French, Brazilians, and Japanese.

The NAR study also delved into the reasons international home buyers increasingly favor U.S. properties—although the answers were wide-ranging. For some, it was the investment potential that was the biggest draw: owning U.S. properties is seen as a solid way to diversify foreign portfolios. International buyers value the relative economic stability and attractive prices present in our real estate market. Other buyers are relocating to the United States for professional reasons, while still others purchase a property for children attending college.

One aspect that New Orleans Area property owners might find interesting is that international home buyers tend to purchase higher-priced houses. That might be due to the impact of the Chinese buyers, whose primary focus is in areas like New York and California where properties are more expensive. In contrast, Canadians are more likely to purchase in lower-priced areas of the country. This is one reason why, although Canadians purchased more properties last year, the amount they spent ($13.8 billion) represented a slight decline from the previous year.

International buyers have another standout attribute that New Orleans Area home sellers should find attractive: they are more likely to pay entirely in cash! About 60% of all purchases made by international home buyers required no financing—that’s up a third from 2007. When you consider the average sales price, it represents a fairly hefty cash infusion.

If your own New Orleans Area home will be on the market soon, I hope you will give me a call to discuss how we can create a strong presentation for local and international home buyers alike!