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Mortgage Banking Solutions president David Lykken weighs in on the state of the housing market.
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Well last week fed chief Ben Bernanke said that housing was quote not out of the woods but take a look at -- Housing starts rising last month to their highest rate in over four years this -- builder confidence -- yesterday sales of existing homes did take higher.
For the month.
David look at a mortgage banking solutions joins me now yeah.
This -- -- blame lenders he's he's letting underwriters as a nobody's being too strict is about the real problem here.
Well bed there's certainly we've gotten stricter construct in constricting back to some reasonable underwriting standards -- -- -- -- two straight.
If you'd have to go back and look at what we were before Donner -- -- we could loosen up there's things we can do but we don't need another government program in the share of the they're really -- to start we need to get back to some fundamentals of jobs and some really sustainable.
Economic data.
And the housing numbers are encouraging -- but.
There's more to can be considered fiscal cliff -- want to.
Well this club beside -- mean if you look at the actual numbers that we got in today and in housing starts were up about three point 6%.
Month over month that's not to -- you know deputy be ashamed up up 42% over the last year so.
Of the -- is there but still you kind of get this overall sense of caution when it comes to housing wiser still so much nervous out there.
Well number one you look at -- -- existing home sales data that came out yesterday it's still the vast majority of the -- is being bought.
And are being bought by investors David that came out today on existing sales -- united listing homes starts.
Do you realize that -- that the vast majority of the increase was in multifamily.
That single family construction starts guns yes construction starts are actually -- Did know what you're saying that the multifamily that is investments those those are investors those are not actually first time home buyer is you know -- married couple glamour it's actually investors that are making these moves and that's that's an issue.
That is an issue and I think we got to end -- I'm optimistic I'm the glad to see we're seeing a bottom Foreman housing.
But what's forming the bottom it's not first time home -- it's not the people coming back in the market bigger have a sustainable long term.
Trajectory on this housing market -- investors taking advantage of the law housing prices that's great news we want that Cheryl and we need -- However we've got to address the jobs that we got address the fiscal cliff issues that are they're facing us and I'm optimistic but you know.
I'm looking at -- the other Rangel and these some of the data in these numbers like the fact that it's mostly deserters -- community big advantages.
What you wouldn't you know as a fiscal club I do want to bring that up and a discussion here because you know the Wall Street Journal is in you know let's cut appointed the fact that we could see.
It but to potential discussion Washington among all of this.
Of fiscal cliff edge stuff is tapping the mortgage interest deduction.
I mean that was -- hurt again those buyers the use -- really not coming at the table for the individual buyers that would hurt them.
What if we do see some that like that come out of Washington even if this just right.
Well I'll tell you this Arab the mortgage industry production hate to -- go away but the reality is I don't think that's really gonna have -- a significant factor in housing.
And getting this housing market back to work.
It is an issue you're gonna hear a lot of yeah every day.
But they'll -- -- negative -- could -- about how -- on the interest deduction.
-- -- with one more reason why people are gonna stay and -- share without question that is a reality however when you look at this.
That at a healthy housing market would does not need an interest -- deduction so that's probably -- break from some of the fact.
A my friends -- -- so I really think that that is going to be a bit of a moot issue as a relate to the overall issue of a housing recovery -- Are -- David liken it -- of the day don't looks Italy's on the outset so -- will begin next -- that next month David McCann thank you very much.
As the --
