Will new housing regulation effective 10/1 cause builders to drop even further?
I have come across a couple of interesting articles lately which indicate that loan originators and home builders are pumping as many buyers through the system as possible before a new federal ban on down payment assistance goes into effect on October 1st.
The elimination of this down payment assistance will likely be good in the long run because a high percentage of loans using it default, but in the short run this will likely cause more pain for builders as any slowing that we see in the decline in home sales in September might just be a blip on radar. I suspect that the October home sales numbers will be dreadful. I'm not touching builders with a ten foot pole right now, even with the impressive drop in mortgage rates.
Industry pushes to restore aid by sellers
Down payment assistance program to end