Real Estate / Economic News:

Banks Are Still Lending! – In the wake of Covid-19 related economic uncertainty, some larger banks such as JP Morgan Chase and Wells Fargo have tighened their lending requirements. Chase is now requiring a minimum FICO score of 700 and 20% downpayment. They have also both temporarily put a hault to Home Equity Line Of Credit loans. However there are still plenty of other lenders originating mortgages. It is still possible to put down as little as 3% with a credit score of 620. As always, it is best to shop around or use a mortgage broker to find the best deal. Mortgage Rates Hit Record Low – Mortgage rates reached a new record low this week, with the 30-year fixed-rate mortgage falling to its lowest average ever since Freddie Mac began tracking such data in 1971. “The size and depth of the secondary mortgage market is helping to keep rates at record lows,” says Sam Khater, Freddie Mac’s chief economist. “These low rates are driving higher refinance activity and have modestly helped improve purchase demand from their extremely low levels in mid-April. While many people are benefiting from low mortgage rates, it’s important to remember not all people are able to take advantage of them given the current pandemic”. Home Sales Slowdown Temporary – According to the National Association of Realtors, closings are down 16.3% compared to a year ago. “The housing market is temporarily grappling with the coronavirus-induced shutdown, which pulled down new listing and new contracts.” “As consumers become more accustomed to social distancing protocols, listings and buying activity will resume, especially given the record low mortgage rates.” Although Spring sales are predicted to resume durning Sumer and Fall, the number of sales is expected to be down for the year. Housing prices have remained steady and due to the ongoing housing shortage, home prices are likely to squeeze out a gain in 2020 to a new record high. Home Sellers Staying Firm on Asking Prices – Real estate professionals nationwide report that about 77% of potential sellers are preparing to sell their homes once stay-at-home orders from the COVID-19 pandemic are lifted, according to a newly released survey from the National Association of REALTORS®. “Plenty of buyers also appear ready to take advantage of record-low mortgage rates and the stability that comes with these locked-in monthly payments into future years.” But home buyers in search of a big bargain may not find one. Nearly 75% of REALTORS® report that their sellers have not reduced listing prices to attract buyers. Housing inventories are near record lows and that reduced competition may be prompting more sellers to stand firm on their home prices. Fed Waives Limits on Savings Account ‘ACH’ Withdrawals – The Federal Reserve is temporarily waiving limits on the number of ACH savings account withdrawals and transfers that bank and credit union customers can make. The Fed has eased restrictions on 6 monthly withdrawals that so banks can ensure customers have greater access to their funds. Pandemic Driven Trend Toward Larger Houses – Following the pandemic, many housing experts predict a wave of buyers will want to upsize their homes. Americans in many states, hunkered down from sheltering-in-place orders, may have started to feel cooped up. A survey of 1,300 homeowners conducted by realtor.com® and Toluna Insights found “small spaces” was the biggest gripe from owners about their homes during the pandemic. That could prompt more people to move to the suburbs to seek more space. The survey found that a quiet neighborhood and outdoor space were the two most coveted home features during the pandemic.