According to Agency Logic, existing home sales bounced back strongly in May as First-time buyers returned to the market. Also, according to Realtor.org, this fueled an overall increase in existing home sales to their highest level in nearly six years. Agency Logic goes on to say that “sales have now increased year-over-year for eight consecutive months and are 9.2 percent above a year ago.”
Obviously, this is one indicator that our economy is, at least, pointing in the right direction. But there are still challenges ahead, one of which is the impending implementation of the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure, or TRID, regulation., which This act integrates existing disclosures required by RESPA and the Truth in Lending Act to improve consumer understanding of the mortgage process, aid in comparison shopping, and help prevent surprises at the closing table. From a practical standpoint, this could serve to slow down the process of buying and closing on properties, which may give some people (i.e. buyers and sellers) heartburn until this new process has been thoroughly implemented and potential issues resolved.
Agency Logic reports:
“National Association of Realtors® President Chris Polychron, Executive Broker with 1st Choice Realty in Hot Springs, AR, says Realtors® overwhelmingly support the Consumer Financial Protection Bureau’s proposal of a two-month delay for the implementation of the new Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure, or TRID, regulation. ‘NAR has long advocated the need to avoid implementing the new regulation during the peak buying season. With interest rates on the rise, many families wanting to buy are looking to lock-in at current rates and move into their new home before the school year starts. Holding off on TRID implementation through the summer should help these buyers avoid disruptions or delays in closings that could easily develop once the regulation goes into effect.’”
The bottom line is that this new regulation is coming down the pike and, while the intent is to better protect consumers, it’s going to slow things down. Eager buyers and sellers will have to exhibit some patience as a result but, hopefully, the end result will be positive.Posted by Brock Whisenhunt on