Housing Market in General
After months of rapidly inflating sales and home prices, the market began it’s adjustment in September. Home sales dropped 1.9% in September from their 5.39 million in August to 5.29 million.
Economists have been anticipating this adjustment, as with the old saying, what goes up, must come down. The reduction was anticipated because of the rapid increase in sale prices for homes. It was moving so fast that the mortgage industry was having a hard time keeping up with it. For example, appraisers could not appraise homes at the most current market values because they have to look at the previous 6 month average of comparable homes. When prices move up too quickly, homes that sold six months earlier were still selling at the pre-inflated price, and thus lowered home appraisals.
More evidence of a buying slow down is that the total time on the market for all homes changed from 43 days in August to 50 days in September.
While all this chaos has been happening, the VA loan program has hit a new high. The VA loan program backed nearly 630,000 VA loans this fiscal year. Just so you get an idea of how that’s changed, take a look at the chart.
Veterans and military families across the nation have been taking advantage of this amazing program for over 70 years. Despite softer requirements, like a minimum 620 credit score and no required down payment, the VA loan continues to have the lowest foreclosure rate of all the loan programs currently available.