2013 has been a year of recovery for the housing industry and the nation is praising it for the same. The housing recovery has been quite a relief for everyone and homebuyers are seemingly becoming confident for buying homes. If we look at the records from U.S. Census Bureau, the new construction rates have been higher this year by 24% along with a 32% rise in existing home sales that was reported by the National Association of Realtors. In addition, the First Look report from Lender Processing Services stated a 14% drop in the delinquency and foreclosure rates.
All the facts stated above are a proof of solid recovery so far but the buyers are still in a fix over the rising rates and low inventory. Even if everything goes well and the housing industry recovers, there are chances of risk to the housing industry, according to the Chief Economist Jed Kolko of Trulia.
The mortgage credits are very tight even in this recovery phase and only the borrowers who are creditworthy may find it loosening a bit. However, it is also expected that new mortgage rules will come out in 2014 that may help in justifying the safer loans from the riskier ones. It will also enforce that banks become willing to write only those mortgages, which are safer.