According to David Stevens, President and CEO of the Mortgage Bankers Association:

“The U.S. housing market is showing definite signs of recovery with purchase originations beginning to increase and more liquidity in the market. The recent “good times” can be attributed to two factors – the federal government’s Quantitative Easing (QE) program which created extremely low interest rates, and refinancing ease of negative equity loans due to HARP.

Now that these programs have almost run their course and given a much-needed boost to the marketplace, as anticipated, the federal government is beginning to plan for reducing the QE program and the refinance boom is coming to an end, causing overall market contraction. When the market contracts we can see the true operational impacts of regulations.”

Read his article…