RFC’s Barry Habib States Increase in Housing Prices Good for the Mortgage Industry

COLUMBUS, Ohio--(BUSINESS WIRE)--The slight increase in housing prices will lead to a healthier overall housing sector, as the creation of equity will begin to help homeowners get out from being underwater on their homes. Additionally, as housing gains traction, the effects will be a positive influence on the entire economy, according to mortgage industry expert Barry Habib, chief market strategist at Residential Finance Corp. (RFC’s), a nationwide mortgage lender.

“This is another reason we are seeing the start of sustained health in housing.”

Housing inventory numbers are declining. This is a positive indication for the market because tighter supply, along with the lowest cost to finance them on record, suggests that the stage is set for greater purchase activity and home price appreciation. Moreover, the rental market is also tight, causing rental amounts to rise at a significant rate.

“When the monthly cost of owning a home is compared against renting a similar home, the payment is often very close and sometimes even less than the cost to rent,” Habib explained. “This is another reason we are seeing the start of sustained health in housing.

“Savvy homebuyers are taking advantage of this opportunity now, as prices appear to be heading up,” he added. “They understand that while rates could remain low, home prices may not.”

Habib also touched on the following points while on CNBC’s Squawk Box yesterday morning:

• While Fed says the interest will remain low until 2015, interest rates could still rise
• Small price increase in home prices
• An increase in rental rates
• Consumers with down payments of 3.5 percent qualifying for a loan
• Growth in the MBS market can further bring down interest rates

About Residential Finance Corp.

Founded in 1997, Residential Finance Corporation (RFC) (www.residentialfinance.com), offers homeowners and homebuyers nationwide a wide range of home mortgage loan options, including special lower-rate government-insured FHA and VA loans, residential mortgage loans, jumbo mortgage loans, and reverse mortgages. RFC’s highly-trained staff delivers mortgage expertise and customer service excellence, winning the company many awards, including Columbus Business First Corporate Caring Award, Columbus Business Journal Best Place to Work, Florida Trends Best Company in Florida, American Business Award Sales Department of the Year, Inc Magazine INC5000 Fastest Growing Company, and American Society of Training and Development Excellence in Practice. Headquartered in Columbus, Ohio, RFC has branches throughout the country, and is seeking loan officers and branch managers to join their network of branches. For more information contact, Jessica Manna at 614.255.4317 or www.myrfccareers.com. NMLS#1652. Equal Housing Lender. Equal Opportunity Employer.