Norris Bruce
Aug 08, 2019

Is It Worth The Premium To Sell To iBuyers?

Today’s News Synopsis:

Sellers pay a price for convenience.  Mortgage rates saw a tremendous decrease in the latest Freddie Mac survey with 30-year rates now at 3.6% and 15-year rates at 3.05%.  Foreclosure filings decreased 18% from last year, coming in at 296,458.

In The News:

Freddie Mac “Mortgage Rates Drop Significantly” (8-8-2019)

“Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) rate averaged 3.60 percent, the lowest it has been since November 2016.”

Mortgage Bankers Association “Mortgage Credit Availability Decreased in July” (8-8-2019)

“Mortgage credit availability decreased in July according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from Ellie Mae’s AllRegs® Market Clarity® business information tool.”

ATTOM Data Solutions “296,458 U.S. Properties With Foreclosure Filings in First Six Months of 2019, Down 18 Percent From A Year Ago” (8-8-2019)

“ATTOM Data Solutions, curator of the nation’s premier property database and first property data provider of Data-as-a-Service (DaaS), today released its Midyear 2019 U.S. Foreclosure Market Report, which shows a total of 296,458 U.S. properties with foreclosure filings — default notices, scheduled auctions or bank repossessions — in the first six months of 2019, down 18 percent from the same period a year ago and down 82 percent from a peak of 1,654,634 in the first six months of 2010.”

HousingWire “With iBuyers, sellers pay a price for convenience” (8-8-2019)

“The iBuyer model may be new, but it appears to be catching on quick.  The market for iBuyers has exploded, growing by 25% every year for the last four years as big names like Zillow and Redfin get in on the game.”

DS News “The Rise of Built-for-Rent Homes” (8-8-2019)

“Some builders are redefining the path to homeownership through new detached rental products.”

USA Today “Will mortgage rates keep dropping?  Homeowners and buyers benefit from lower interest rates” (8-8-2019)

“One silver lining from trade tensions with China and fears about a slowing global economy – the same factors whipsawing the stock market this week – is that mortgage rates are heading lower.”

Freshome – “Home-Buying Millennials are Obsessed with Lawns and Gardens” (8-8-2019)

“The U.S. Census Bureau says homeownership is up over last year. In their words, ‘the national homeownership rate has risen to 64.4 percent.'” “9 Home-Buying Costs Veterans and Active Military Should Keep in Mind” (8-8-2019)

“For veterans and active military, VA loans are a great way to achieve the dream of homeownership.”


California Real Estate Investor Events

Bruce and Aaron Norris will be hosting a Florida Boot Camp in Fort Myers Florida August 15-16.

Bruce Norris will be presenting his latest talk 10 Decisions To Make Before The Next Downturn with InvestClub on Wednesday, August 21.

Aaron Norris will be presenting his latest talk Innovative Real Estate Marketing with WEREP on Friday, August 23.


Looking Back:

All 50 of the largest US cities saw a rise in the share of renters.  The Mortgage Bankers Association reported a 3% decrease in mortgage applications from the previous week.  One-third of the largest cities in the U.S. were seeing increases in available inventory


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