Existing Home Sales Fall while Supply Rises

Existing home sales dropped .06% in Feburary to 5.02 million annual rate. This is the third straight month that purchase market has fallen. It is also the largest decrease in 8 months signifying a slower than expected recovery. Adding to the issue, houses for sale increased 312,000 to 3.59 million from January. The increase marked the greatest increase in homes for sale since April 2008.

The increasing home inventory is having an adverse affect for borrowers attempting to refinance. Typically, the more inventory on the market the lower home values will go. As home values depreciate homeowners' equity will decrease. As a borrowers loan to value (loan amount/home value) increases, their refinancing options decrease.

Although, it may become exceedingly difficult for homeowners with high ltv's to refinance, it doesn't mean that it's impossible. There are still options available for homeowners with high ltv's such as FHA loans. Some borrowers can obtain financing up to 97% through the FHA loan program. Depending upon a borrowers specific situation there may be other options as well. 

Feel free to contact me about different options available to you.