Home Sales Popping Into The Spring Season: NAR
30% Of Home Buyers Have Credit Scores Below 700
My mama always said life was like a box of chocolates — you never know what you’re gonna get.
And the same is true for your mortgage approval, which is why if you’re even thinking about buying a home in the next two years, get yourself in front of a lender pronto.
Because here’s a fun stat: Nearly one-third of last month’s home buyers had credit scores in the five and six hundreds.
That’s average credit, at best; and it represents a huge number of former renters who are now owners of homes.
That data comes from mortgage software firm Ellie Mae and its most recent Origination Insight Report, which is like a scorecard for the U.S. mortgage applications.
The data is topical, too, because another Ellie Mae report shows thirty-two percent of renters choosing to continue renting because — why? — they think their credit score’s too low to get their home loan approved.
See what I was saying about that box of chocolates?
You can’t know if you’re going to get approved for a mortgage until you try to apply. So, drink you about fifteen of them Dr. Peppers and get a hold of your favorite mortgage lender.
Get yourself pre-approved to go buy that house. And that’s all I have to say about that.
Today’s Mortgage Rates
Mortgage rates are higher today after the three-day weekend.
But you know what they say: when life gives you lemons!
Mortgage rate quotes for conforming, FHA, VA, USDA, and jumbo loans are up as compared to last week.
Rates vary by loan type, credit score, loan size, and about a dozen other factors, too.
Make sure to talk with two or more lenders before settling into a range of expected rates for you and your home.
Pending Home Sales Index Climbs Into Spring
Buyers and sellers and buying and selling at a higher pace as compared to earlier this year.
New data from the National Association of REALTORS® shows a three percent uptick in homes under contract, despite a veritable paucity of homes listed for sale.
That may make for an interesting spring and summer market.
NAR’s Pending Home Sales Index is unique in that it’s a forward-looking indicator — one of the few in the housing market.
Most other indices tell us what already happened. The Pending Home Sales Index tells us what will happen. In this case, how many homes will go sold.
On an annual basis, the index forecasts more than 5.7 million homes sold over the twelve months, and that would be the largest number since late-2006, prior to the housing market downturn of last decade.
That’s major considering how few homes are for sale for and it explains why 46 percent of homes are sold within a month of going on the market.
It’s never a good idea to rush into home buying but if you have plans to purchase sometime this year or next, consider moving up your timeframe.
You may just get a better deal.
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