The Mortgage Crisis JUST got Worse.
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 Published On Apr 12, 2020

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The mortgage crisis appears to be worsening. Banks like JP Morgan Chase, Wells Fargo, and others are tightening their mortgage lending standards. In fact, the Mortgage Credit Availability Index (MCAI) fell over 16.1% in March with substantial decreases in credit available for jumbo loans (over 36%) and conventional loans (over 24%) this WHILE rates are at again historic lows.

A tighter mortgage market risks removing substantial demand from the market as less buyers buy leading naturally to softer or lower real estate prices. If mortgage lenders then ALSO continue to force people into ridiculous mortgage forbearance terms, such as requiring payments immediately at the end of the forbearance period (which is a total scam), then the market may fall further. Either way, the magnitude of this decline will be proportional to how long this outbreak lasts. In the mean time, the best thing to do with your money is decide: do you have a deflationary or inflationary outlook? That is, do you believe the Fed is going to keep printing money or not? You have to answer that question first, then decide what's best within that.

Will Real Estate prices fall? Yes. The question is how much. An adjustment or a crash. Last-minute VOEs or verifications of employment aren’t helping either.

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❎I am not a CPA, attorney, insurance, contractor, lender, or financial advisor. The content in these videos shall not be construed as tax, legal, insurance, construction, engineering, health & safety, electrical, financial advice, or other and may be outdated or inaccurate; it is your responsibility to verify all information yourself. This is a Youtube video for entertainment purposes ONLY. IF stocks or companies are mentioned, Kevin MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Kevin's videos. If you need advice, please contact a qualified CPA, attorney, insurance agent, contractor/electrician/engineer/etc. financial advisor, or the appropriate professional for the subject you would like help with. Linked items may create a financial benefit for Meet Kevin®. Any use of other media is by fair-use or license only. The Paffrath Organization is a licensed real estate brokerage doing business as Meet Kevin® in California under DRE #02032575. This is not an advertisement of property for sale. Any mention of properties listed or sale or otherwise shall not be construed as anything other than an opinion for entertainment purposes only.

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