The Irony of Mortgage Banking

In general, mortgage booms are born in recessions (though not always.) When the economy struggles (like it has since 2008) the Federal Reserve keeps rates low, and those low rates spark a boom in housing and mortgage lending. Of course, this time around everything is different. Rates are the lowest they've been ever and still, home buying is not booming – though refinancings have been somewhat strong but much weaker than they should be. As we all know, refis have not boomed because loan standards are so tight that thousands of mortgagors just don't qualify anymore. Declining home values certainly have not helped – nor has an unemployment rate that is stubbornly north of 9%. When will it all turn around? I have no clue, really, but I keep thinking the bad news can't last forever. In times of crisis opportunity presents itself. Perhaps, we'll look back at these years and say, “Boy, that was a great time to buy a home.” Then again…