Tag Archive for: 502 guarantee program

Home Mortgage Demand Declined in Rural America Too

Signs and Trends from a USDA Housing Finance Product

There have been numerous business and media reports on the slowdown in homebuying and mortgage activity in recent months. This market response is largely related to recent interest rate increases for 30-year fixed mortgages spurred by the Federal Reserve raising its benchmark rates. According to some estimates, the rate of mortgage applications nationally fell by half in 2022. Are mortgage markets behaving similarly in rural America too? Data from the Department of Agriculture (USDA) on its Guaranteed Home Loan product signals that rural homebuyers hit the brakes in 2022 as well. In the last fiscal year, USDA loan guarantees plummeted by more than 40 percent from their 2021 level and dropped well below the 100,000-loan mark to guarantee 72,000 loans.

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Reuters Rural Housing Article Draws Wrong Conclusions

Reuters Rural Housing Article Draws Wrong Conclusions

by Leslie Strauss

“Special Report: A rural housing program city slickers just love,” published by Reuters on March 18, 2013, relies on some questionable methodology and draws dubious conclusions.

The article focuses on USDA’s mortgage guarantee program, one of many administered by USDA. The department also makes mortgage loans itself, and assists homeowners who cannot afford to repair serious housing problems, homebuyers who help build their own homes, and tenants who cannot afford to rent decent apartments.

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