Will the Newly Employed Refi or Buy a Home?

A healthy mortgage/housing market relies on two key factors: low rates and robust employment. We have the former, but the latter seems to be lacking – big time. Or is there true hope on the horizon? New figures released Thursday morning show that the number of Americans filing new claims for jobless benefits dropped to a 40-month low. Meanwhile, factory activity in New York state hit a seven-month high in December. But as any loan officer can attest the real killer is underwriting terms. Residential loan standards are just too tight – even for jumbo mortgages where the borrower has a ton of cash in the bank or equities. Of course, next year guarantee fees will get hiked (see related story on the National Mortgage News website) which means lenders will be passing that cost onto borrowers. Some days, you just can't win…