Image via Kozzi
Last week, optimism dominated the real estate headlines. It all pointed to a healthier real estate market, and good news for both buyers and sellers.
FHA Loans Hit a Two-Year High
In April, the Federal Housing Administration (FHA) endorsed 108,386 residential loans. Those loans account for $21.624 billion (yes, with a “b”) in home loans. That number includes traditional loans, home-equity mortgages, and Title 1 loans. The last time this many loans at such a high value were endorsed by FHA was in May 2013.
Why should you care? FHA loans offer lower down payments, work with buyers from moderate incomes, and have less stringent requirements for borrowers. While there are plenty of good loan products out there other than FHA, more FHA loans is a good sign that first-time home buyers and other buyers are returning to the market.
Mortgage Sales Outnumber Cash Deals in Florida
For the first time since 2009, May saw more homes purchased by buyers with mortgages than those with cash. The 64-month streak has been broken. In May, cash deals counted for 47 percent of all home sales.
Why should you care? Many cash investors swooped in and purchased lower priced homes, which in some areas caused an inventory shortage for buyers with mortgages. What was often left behind were higher value homes or the low-end foreclosures that needed work to be done to make them liveable. The increase in mortgages means that more people are entering the market and qualifying for a mortgage. All of this is good for buyers and sellers.
U.S. Consumer Confidence Increased in June
According to the latest U.S. Consumer Confidence Index, American consumers are becoming more confident about business and employment. More people believe jobs are “plentiful,” while less believe they’re “hard to get.”
Why should you care? More optimistic consumers often leads to a willingness to spend money in the near future. As long as buyers feel they can keep their job because business is good or can find a job if they need to, it’s easier to make the commitment to a new home and a mortgage.
Not everything in the real estate market is perfect. Lending is still difficult for specific pricepoints and specific buyers. There are inventory shortages in some areas. But, whether you’re a buyer or seller, you can feel more optimistic as we move through the summer months. On the Emerald Coast, business is good.
Leave a Reply