Thursday, April 30, 2020

Mortgage News: COVID-19 home prices are unlikely to hit 2008 levels

Here's what you need to know this week
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Better Mortgage Market News 4/30/20

As part of our mission to make homeownership simple, fair, and affordable, we're committed to providing the most accurate and up-to-date information available to everyone in our community. Here's what you need to know this week.

Why COVID-19 home prices are unlikely to hit 2008 levels

While the national median home price has remained steady at about $320,000 over the last 6 weeks, Fannie Mae and Freddie Mac both predict a decline through the end of the year. Year-over-year price growth has already started to slow down, with prices for the week of April 12th only 0.3% higher than last year compared to 0.8% the previous week.

There are a few reasons, however, that the current environment shouldn't conjure up memories of 2008's housing collapse.

Fed and Treasury signal that the mortgage market is healthy enough for now

Delinquencies reportedly rose 3.4% in March, and 6.4% of all mortgages are currently in forbearance agreements. In spite of these trends, neither the head of the Federal Reserve nor the head of the US Treasury have indicated that they believe these problems signal an industry-wide issue for servicers and lenders — at least not yet.

 
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