Isn’t this a set of interesting statistics?
In 2005, 46% of consumers who opened a new mortgage had a FICO score less than 700. In 2008 this percentage had dropped to 25% . Fair Isaac (creators of the FICO score) reports that borrowers in the Northeast continually present the least amount of default risk nationally for real estate loans.
It’s good news that creditworthiness increased in the last few years. I know someone who actually got a mortgage offer in the mail for their dog in 2005. Their dog! <le sigh>
It’s pretty common wisdom that the foreclosure rates need to fall in order for a real recovery in real estate to happen. Maybe the 2008 and beyond buyers who were more creditworthy won’t default on their mortgages and we’re near the light at the end of the tunnel. On the other hand, if the dismal unemployment rate continues, that’ll mean more foreclosures and more uncertainty in the market.
Wishing I had a crystal ball. . . .
(stats provided by Rob Chrisman of Mortgage News Daily)
Heather Barr is a Realtor and a happy workaholic. She eats more than someone her size ought to be able, and is a runner as a consequence. Her TiVo's full of spy thrillers, police procedurals and Whedonesque sci-fi.
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Wow, Doug, that’s an amazing sales stat. Here in metro Phx the over-$500,000 sellers are still struggling while sellers of under-$125,000 homes have their pick of buyers. I wonder if you are close enough to the Washington, D.C. area to have that fueling the $700k Colonial market? As they say, everything in real estate is local, even hyper-local. Thanks for dropping by and reminding me to read your great blog more diligently!
I read an article today how they want to consolidate the power and influence of the Fed from the current regional governor set- up. You know, when they mention that a Fed governor in a region disagrees with the rest of the fed governors…
How does this relate? The tone of your post is pretty grim which is in sharp contrast to my local real estate market where people are still buying $700k colonials the first weekend they hit the market.
Reading your blog helps me keep the proper perspective… that we are not out of the woods yet.