This blog has previously discussed the steady recovery of the housing market and economy as a whole. With foreclosure rates falling, interest rates at all-time lows and the construction market showing positive signs, homeownership is once again looking like an acceptable option.
Even so, lenders would be well-advised to invest in loan management software. This will ensure that even as the market works its way back to full strength, borrowers can stay on top of their monthly payments. Additionally, an amortization calculator can keep the financial plan well within borrowers' abilities.
A recent Bloomberg Businessweek article discussed how the lumber market rose to a six-year high, further proof that U.S. home construction is on the rebound.
"Housing inventories are coming down, and housing prices are coming up in major markets in the U.S.," Hakan Ekstrom, president at Seattle-based Wood Resource International LLC, said in a telephone interview with the source. "That's an indication that demand is higher than supply and that's likely to continue next year."
Specifically, housing starts in October reached an annual rate of 894,000, the highest since July 2008. Michelle Meyer, a New York-based senior economist at Bank of America, said earlier this month that those numbers could exceed 1 million a month by the end of 2013.
The Standard & Poor's Supercomposite Homebuilding Index has also climbed 23 percent since the end of June. A prediction by the National Association of Realtors – set to be released December 20 – added that previously owned home sales will also increase by a 4.9 million annual pace.
With signs of improvement in the housing market, lenders should not become overly confident. Using an amortization schedule for loans is a smart investment, as it can help homeowners stay on top of their assigned payment plan.