Home Sellers Saw Record Profits In The Second Quarter

With inventory still low and no shortage of buyer demand, home sellers saw record profits in the second quarter of 2020. Realtor.com reported on recent data released from real estate information firm ATTOM Data Solutions indicating that nationally, home sellers showed a profit of around 36% over what they originally paid for their property. 

By using median purchase and resale prices for properties in 104 metropolitan areas with at least 1000 home and condo sales in the second quarter, ATTOM found that profit margins hit new records even as prices continued to climb. As mortgage rates continue to drop we are seeing even more buyers drawn into the market in hopes of taking advantage of the low interest rates. But with housing inventory remaining low and new construction scrambling to keep up, it's likely that sellers will continue to see these increased profit margins for a while.

If you've been thinking about selling your home or are curious about the current market, give us a call, we'd love to answer any questions you have!

MORTGAGE RATES HIT 50 YEAR LOW!

For the first time in 50 years the average 30-year mortgage rate has dropped below 3% this week, averaging just 2.98% according to Freddie Mac. As buyer demand is increasing, an already low inventory of available homes is decreasing making the demand for new construction even higher.

According to Danielle Hale, chief economist for Realtor.com, the low rates are translating to monthly mortgages for a typical home that are $125 less per month than just a year ago.

So are these new rates here to stay? Mortgage giant Fannie Mae seems to think so. They are expecting 30-year fixed rate mortgages to average 2.9% for the first half of 2021 and possibly drop to 2.8% for the remainder of the year. So, if you're thinking about buying, don't walk, run to your lender to get in on these incredibly low rates. And if you're thinking about selling, give us a call! We have buyers and inventory is low! Homework is what we do, and we'd love to help you find your dream home or sell your existing home at the best price possible!

• Source: 
• www.floridarealtors.org/news
• www.finance.yahoo.com/news

The FICO Resilience Index and How It Could Help You Buy a Home

     

The FICO Resilience Index was created by the Fair Isaac Corp., also the creator of the FICO credit scoring system, to be used as a supplemental score that gauges a buyer's likelihood to default in the the event of a future recession. The new credit index was released last week and has the potential to help more buyers qualify for a mortgage by allowing lenders to assess their ability to withstand the effects of future economic changes even if the currently have lower credit scores. 

The new scoring tool works differently than the traditional FICO score by placing less importance on missed payments and a higher emphasis on having overall lower account balances and credit usage. Measuring on a scale of 1 to 99, lower scores reflect greater financial stability and higher scores indicate more sensitivity to possible economic changes. Consumers who have lower traditional FICO scores but also have lower balances, credit usage and inquiries may benefit from the new index and see a boost in their creditworthiness by lenders. 

For more information about the New Resilience Index, the article “FICO Introduces New Resilience Index. Here’s What It Might Mean for You,” Forbes.com (June 29, 2020) has great information, or contact your lender directly.