Did Ben Affleck Just Buy a Los Angeles Mansion for $20.5M?The housing market has been decidedly stuck of late. Sellers with low mortgage rates are holding on to their homes, leaving buyers with scant listings to choose from.
However, some of the supposed housing issues that are coming up time and again aren’t true. Here are the four biggest myths about the current housing market and why experts say they’re wrong.Misconceptions and myths are popping up on both sides about the state of the market on social channels and forums. in a bubble—that it will burst and lead to plentiful homes available at fire-sale prices.
“That access to credit included a surge in lenders offering loans to buyers with lower credit scores, or subprime borrowers,” says Chris Ragland, principal at Ragland Capital. None of these conditions is true now. Today, almost half of all homeowners have more than 50% equity. “Interestingly, the increase in interest rates has not resulted in a decline in prices in most markets,” says Ailion.
Fannie and Freddie are essential organizations in the mortgage industry. About 70% of all mortgages are GSE-backed. So they can set requirements and establish fees.