The State Of Real Estate.

  • Housing affordability is near record lows.
  • Rents are up 16% nationwide, no rent control on SFR’s 
  • 37% of all houses are Free and clear of Loans! RATES DON’T MATTER to those people!  
  • Interest rates averaged 6.292% from 2000 to 2009, leading up to the Mortgage meltdown and our last recession – Our rates are still better than that, and the market did well at that time!  
  • Interest rates averaged 4.092% from 2010 to 2019 from the Mortgage Meltdown to the Pandemic. 

Crash of the Real Estate market? This is nothing like 2008!  

  • In 2008, nearly 40% of all mortgages were Adjustable. Today, that number is less than 1%. 
  • In 2008, 16% of the homes were at risk of a mortgage default, and today, it is only 2.3%. 
  • Lending standards today are much higher than in 2008. 
  • There are minimal 100% financing options today. In 2008 we had stated everything.  
  • Bank statement loans are now 10% down with a 680 score today. In 2008 you could do 0 down with a 600 credit score.
  • Stated income today is 30% down with a 680 score. In 2008 you could do a stated loan with a 0 down 640 scores. 
  • Interest-only loans 20% today vs. 0 down in 2008.   
  • Negative Amortization loans don’t exist now, and they were a cheap option in 2008 for people who just wanted a low payment. 
  • The rental vacancy was over 10% in 2008, and today we are below 6%. 

These factoids courtesy of Mike Meena at Augusta Mortgage.