Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights personal income and consumer sentiment.
- What is a credit score? A credit score is meant to reflect a consumer’s risk of not paying money that is borrowed.
- The chart above shows average (yellow) and median (green) credit scores over time. It also shows the cutoff for the 25% with the highest credit scores (red) and lowest credit scores (blue) based on a sample the New York Fed has of consumer credit data.
- The average and median credit scores among consumers have remained roughly constant over the 12 year history of the data. In 1999 the median was just below 700 compared to just above 700 in the first quarter of 2011.
- How do credit scores affect real estate? Buyers seeking financing are evaluated by lenders based in large part on their credit score.
- Check out the blog for other articles on credit scores that show what has happened to the average credit score of FHA and Fannie/Freddie borrowers.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights jobless claims and the GDP.
- Many of the most resilient local economies in the U.S. are clustered in the Midwest, while some of the worst performing markets are those that experienced the sharpest housing corrections.
- The connection is no coincidence as housing and construction play an important role in economic growth and job creation. As prices and sales declined in these markets, so did employment in construction, housing related services (lawn care, pest control, pool care, etc.) and retail sales (home electronics, furniture, home improvement centers, etc.).
- This cycle spiraled downward and resulted in more layoffs as local governments and businesses pared jobs to reduce costs. Some of these markets have made headway in recent months, but job creation remains an issue.
- Curious how your market matches up? Look at NAR Research’s Local Market Reports for more information about employment trends in your area (log-in required).
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights mortgage purchase applications and durable goods.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights the Case-Shiller Home Price Index.
- Despite a national unemployment rate of 9.1%, some markets have been able to tack on new jobs in a big way over the last year.
- Texas has been a magnate for job creation and boasts two of the strongest growing markets in Dallas and Houston.
- However, Milwaukee, Wisconsin managed to create more than 20,000 jobs over the period for June of 2010 to June of 2011.
- Find more information about employment trends in market by reading NAR Research’s Local Market Reports for the 2nd quarter of 2011.
- Composite FICO scores among FHA mortgage endorsements have begun to ease from peak levels in the early part of 2011.
- The average purchase FICO is down to 697 from 703 while the average refinance FICO is down to 695 from 707. FICO scores for both loan types remain nearer to their peaks than their typical average.
- Purchase endorsements had an average FICO score of 633 in 2007 and 658 in 2008. The 2009 average rose to 682 for purchase endorsements and averaged 698 in 2010. In the first months of 2011, scores continued to increase on average reaching 703 for endorsed purchase mortgages.
- Average FICO scores for refinance mortgages rose even more dramatically from just under 620 on average in 2007 to 707 before easing.
Each day the Research staff takes a look at recently released economic indicators, addressing what these indicators mean for REALTORS® and their clients. Today’s update highlights housing starts and new home sales.
The Financial Industry’s Corporate Profits
The U.S. banking system has been healing since its near-death experience in late 2008. After Lehman Brothers went belly up, a major hemorrhage of liquidity nearly took out several other big banks and financial companies.
Despite this trauma, after three years the financial industry has roared back quite strongly. The most direct evidence of this is in the bottom line – i.e., corporate profits. Not only have they rebounded, but they have shot up to an all-time high in 2010. Profits in 2011 will likely match last year’s figure.
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