July Market Update

  Market data for the past month shows that this is an excellent time to buy a home or refinance. Related


Market data for the past month shows that this is an excellent time to buy a home or refinance.

1 – New mortgage credit data shows that mortgage credit availability is increasing, making it easier for first-time home buyers to secure a mortgage.

  • According to an Ipsos survey, most first-time buyers believe they need a credit score of 780 to 800 to qualify for a mortgage. However, the average FICO score on approved conventional loans is actually just 757, 688 for FHA loans.
  • 36% of potential first-time home buyers believe they need 20% of their mortgage for their down payment. However, data shows that low-down payment mortgages (those requiring 3% or less down) increased from 26% in January to 29% in March and are expected to continue to rise.
  • The number of first mortgages approved is up 55% this month.


2 – Mortgage interest rates are increasing and are expected to continue to rise. An average of Fannie Mae, Freddie Mac, Mortgage Bank Association and NAR mortgage rate projections show rates expected to be at 4.28 by the 4th quarter of 2015 and continuing to rise to 4.77% by the 3rd quarter of 2016.

If you’re thinking of buying a new home or refinancing your current mortgage, lock in your interest rate soon. We recommend talking with Melissa Fisher of Finance of America or Maureen Lein of Guaranteed Rate.


3 – Based on monthly mortgage payments, there’s never been a better time to buy a home. In 2006, average monthly mortgage payments on median-priced homes in the US were at the highest in years at $1305. In 2012, the number reached a low of $664. Numbers are starting to rise, up to $808 in 2014. This means that while monthly mortgage payments are still very low, they are starting to increase, and locking in a new mortgage payment now is essential if you’re considering moving soon.

If you or someone you know is considering buying a new home, this data, including rise in mortgage credit availability, expected increasing mortgage rates, and low, but rising monthly mortgage payments, should encourage you to consider acting soon.

Contact us today to find out how we can help you move forward.