Market Review

HAPPY HOMEOWNERS

U.S. homeowners gained an average of 5.6% in equity year-over-year according to CoreLogic’s Home Equity Insights (HEI) for 1st Quarter 2019. The CoreLogic report only includes properties with mortgages, estimated to be 63% of all homes. The annual equity gain represents just over $485 billion. Homeowners who sold during the first quarter realized an average of $57,500 in gains over their purchase price.

VARIED VALUES

Other data from the CoreLogic HEI show that individual homeowners gained an average of $6,400 in equity during the first quarter of this year; however, gains vary widely among states. Homeowners in Nevada and Idaho saw their equity grow by an average of $21,000, Wyoming was third with an average of $20,000. Homeowners in two states lost equity between January and March: Connecticut and North Dakota owners experienced $1,000 and $16,000 average losses respectively.

MORTGAGES & MEXICO

Rates for a 30-year fixed rate mortgage dipped to a nearly two-year low for the week ending June 6, according to Freddie Mac’s Primary Mortgage Market Survey. Rates have been reacting to ongoing trade tensions between the U.S. and China and proposed tariffs on Mexico related to immigration issues. Rates trended slightly upward at the beginning of the week on news that tariffs on Mexico were postponed pending finalization of an agreement.

CREDIT CONFUSION

Fannie Mae’s latest Understanding of Mortgage Survey 2019 showed that 43% of respondents didn’t know their credit score, compared to 48% in 2015. College grads have driven the increase in the number of people who have viewed their score in the last six months to 65% – up from 53% three years ago. But mortgage credit minimums are still a mystery: 86% of homeowners and 89% of renters either didn’t know or cited the incorrect score required to qualify for a mortgage.

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