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Who's Buying Houses Now?

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  • Description

    David Lykken of Mortgage Banking Solutions breaks down who is propping up the housing market.

  • Duration 3:37
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Sales of existing homes rose to nearly a three year high last month that's encouraging but my next guest says it's important to -- who is actually buying up these properties joining me now is David Lincoln.

Managing partner of mortgage banking solutions.

David thank you for joining us -- so who is propping up in the housing market right now.

You know it's interesting buyers of these homes the significant numbers are investors and it's a great time if you're investor looking for an investment.

What greater placed Indian real estate is at all time low you got affordable cost of funds to buy these -- And the fact is it looks like consumers are choosing to -- actually more than they are buying right now so.

It's a good time for investors in the real estate sector but believe average American family is -- housing recovery is still got a long way to go I mean.

-- the data seems to be more encouraging.

-- -- data is actually encouraging -- and we see home sales moving that start to get people waking up to the reality at some time at some point time prices are gonna go up.

It's interesting to note in this report the medium price of homes actually dropped just a little bit.

Which means there's a little softness still there we don't see a stabilization -- prices but the activities encouraging Ashley and that's that's really something we need to focus on it seems to me David we've had incredibly low mortgage rates as we know now three years but we have incredibly high.

Credit standards and that is up is that gonna continue to be the case and how much of a problem is that.

Yeah that's gonna continue to be a problem plaguing any kind of recovery actually.

What we have is the fact that with the lowest interest rates in time and if that wasn't enough the -- just announced QE3 they're buying a supporting mortgage backed securities.

And act as if we need to -- to go lower so it's kind of like they're throwing everything in the -- -- at this problem in hopes of getting this problem turnaround.

And that is stabilizing housing and seeing a sustainable recovery these are good numbers and we're pleased to see him how much demand is out there right now there it.

It's it's getting better but here's what's -- -- -- the first thing the first thing we start looking at his first time home buyer data while the numbers are improving.

They're far from -- they need to be actually we need to get that segment backing here but when they're concerned about their jobs there's uncertainty about economic -- And their local economies aren't looking real strong people are holding off making that long term commitment about that home so how long could this.

Go on I feel like -- bumbling along crumbling along the bottom here what point do we actually get some legs behind a recovery.

Well I think this the next administration's gonna have a big determining factor on -- -- -- we're gonna start seeing a solid recovery.

And we have to ideologies we have government sponsored programs are we're gonna have more but let's look at a private sector -- really work -- ways out of this problem and let the market do itself.

I think we're gonna see at least 2015.

-- we're gonna see any kind of really sustained.

Trajectory upwards.

Along bottom -- Ashley yeah that's not encouraging to OK so what about very quickly.

We've always heard about all the foreclosures are we getting those through the system -- they still have to he had taken care of now they're they're there and there's certainly a number of the go through but the numbers are dropping.

And in certain markets that's really happening like -- -- simply couple places in California which is usually very depressed in this part of the region as the slowest.

They're actually having -- balked at the -- the -- steps for more than what they want and so there -- parts of the market that are start to receive recovery.

Well -- glimmer of hope then all right David limit mortgage banking solutions great information thanks for joining us.

Good to be with you thank you actually.

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