It’s Just The Facts: September 2018

Housing News You Need To Know:

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  1. Softening market – 20% of the single-family homes for sale in San Diego dropped their asking price in June 2018, the highest percentage to do so in any major US city. 14% of the single-family homes nationwide lowered their asking price – Freddie Mac
  2. We weathered the storm – Over a 30-day period beginning 9/07/08, the government took over Fannie Mae and Freddie Mac in anticipation of as much as $200 billion of mortgage defaults, the largest bankruptcy in the history of the US took place (Lehman Brothers), the $700 billion “Troubled Asset Relief Program” (TARP) was signed into law by President Bush, and a bailout of the nation’s largest insurance company, AIG, gave the government 80% ownership – BTN Ressearch
  3. A new high – After adjusting numerical data from the past for the impact of inflation, the median household income in 2017 – $61,372 – is the highest ever recorded in the US, besting the previous record for median household income – $60,309 – sent in 2016. Before 2016, the peak was $60,062 set in 1999. – Federal Reserve Bank of St. Louis
  4. How did you do? – An average single-family home in America increased in value by +6.5% over the 1-year period from June 2017 to June 2018 – Federal Housing Finance Administration
  5. Gradual increases – Between June 2004 and June 2006, the Fed met and raised short-term interest rates by 0.25% of 1% at 17 consecutive Fed meetings. Since December 2016, the Fed has met and raised short-term interest rates by 0.25% of 1% at 6 of the last 14 Fed meetings – Federal Reserve

Courtesy of Mortgage Market Guide