PARAMOUNT MORTGAGE - LENDER'S BLOG

National headlines got you down? It's understandable when day after day, we hear about the industry's crises. Our clients ask us about it, and before you know it, a self-fulfiling prophecy can start to take shape. Yes, the slowdown is affecting us, but not all states are feeling the pain equally.

In a presentation this week, Mortgage Bankers Association Vice President of Research and Economics, Jay Brinkmann shared some enlightening statistics. His data show that California and Florida are skewing that national numbers. ARM foreclosure starts in those two states combined add up to more than a third of the nation's total. And that is where we see the greatest drag on national home prices.

What does not get reported are the 40 states that continued positive growth in home prices in the 4th Quarter of 2007, including Missouri. So don't let the talking heads get you down. Things have been better, but the stats prove that we are doing a good job keeping our heads above water. When you provide accurate information, buyers and sellers can make decisions based on stats, not stories.

The other eye-opener is this fact: For the first time since 1990, the year-over-year change in the number of owner-occupied households dropped. The number of renters has been rising. What does this mean? When the market corrects itself, there's going to be a lot of pent-up demand from renters wanting to own a home of their own. Let's be ready.

Sources:       Mortgage Bankers Association

                    The Office of Federal Housing Enterprise Oversight (OFHEO)