We wanted to get the attached set of graphs out to you, even though the production quality isn’t so hot, because we thought they were interesting.
The first graph shows the shift in business away from refinances and to purchases. These last three quarters show the highest percentages of FHA purchase business in years. This means banks are less busy processing refinances than any time in recent history…Good news for selling homes! The second graph shows the decline in Foreclosure Actions. This is encouraging, but it needs to be watched. This could be because banks are just not initiating the foreclosure action. Either way, in the short term it should help price stability. The third graph it the most interesting of all. It tracks the Housing Affordability index. The higher the number, the more affordable the housing market is (which is a bit counter intuitive). This number, as you might imagine, has climbed significantly since the crash in 2007. Meanwhile interest rates have continued to hover at 5% or below. If you are interested in better copies of some of these graphs, let us know. We just wanted to get the news out to you while the news was fresh.
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