Only one week of (unofficial) summer left. As we’re changing seasons, it’s a wonder if the housing market is making any changes, too. If you squint, maybe you can see them.
All-cash is still king
Are all-cash buyers still dominating the market? With all of the changes we’ve been seeing in housing over the last few months, cash offers have been popular. Turns out, the answer is yes. In Q2, the percentage of homes with all cash buyers actually went up from Q1 to 35.4%, and is up 4% from Q2 last year.
All the more reason to use FastTrack.
Housing starts down, but what about housing finishes?
The market has been paying so much attention to how many construction projects that builders have started that it’s failed to notice how many they are actually finishing. Or at least the team at Rate.com has.
This isn’t a question of semantics either because many new construction projects did start during the pandemic, only to be slowed down by supply chain issues. Now it looks like those long-gestating projects are finally bearing fruit. Here’s a key highlight to keep in mind:
- Single family completions will increase to around 1.05 million from 970,000 in 2021.
HELOC love
According to Black Knight, at the end of the second quarter 2022, the average U.S. homeowner had $216,900 in tappable equity, up 5% quarter over quarter and 25% year over year. But with rates where they are, no one wants to get a cash-out refi. That’s why the demand for HELOC is so high (49% growth this year alone).
Powell’s comments
You’ve surely heard this by now, but Federal Reserve chairman Jerome Powell’s comments from Jackson Hole on Friday have signaled that another rate increase will likely come in September. This rate increase will already be priced into loans closed between now and then, with the investors hedging between a 50-bps increase and a 75-bps increase.
Buyers ascendant
We’re not quite in a buyer’s market yet, but the advantages that sellers have held over the last two years are starting to evaporate. Homes aren’t flying off the market now, and buyers have more leverage—and time—when making their homebuying decisions.
Pre-Approval
in 10 minutes?
in under 10 minutes. Grab a few important documents to get started.
- Tax Returns
- Copies of W-2s (or 1099s for independent contractors,
freelancers and the self-employed) - A payroll stub
- A bank statement
- Loan obligation info (student loans,
auto loans and credit cards)
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate & its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. Guaranteed Rate does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error-free. Some information in the publication may have been provided by third parties and has not necessarily been verified by Guaranteed Rate. Guaranteed Rate its affiliates and subsidiaries do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action.
*Guaranteed Rate Inc. home equity line of credit (HELOC) is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. The initial amount funded at origination will be based on a fixed rate; however, this product contains an additional draw feature. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will be set as of the date of the draw and will be based on an Index, which is the Prime Rate published in the Wall Street Journal for the calendar month preceding the date of the additional draw, plus a fixed margin. Accordingly, the fixed rate for any additional draw may be higher than the fixed rate for the initial draw. This product is currently not offered in the states of New York, Utah, Kentucky, South Carolina, Hawaii, Texas, West Virginia, Delaware and Maryland. The HELOC requires you to pledge your home as collateral, and you could lose your home if you fail to repay. Borrowers must meet minimum lender requirements in order to be eligible for financing. Available for primary, second homes and investment properties only. Dependent on minimum credit score and debt-to-income requirements. Occupancy status, lien position and credit score are all factors to determine your rate and max available loan amount. Not all applicants will be approved. Applicants subject to credit and underwriting approval. Contact Guaranteed Rate for more information and to discuss your individual circumstances. Restrictions Apply.
I got my start in advertising working on one of the earliest content marketing programs of the internet age, Home Made Simple for P&G Homecare. At the time, it wasn’t even called content marketing. Then I spent the next fifteen years working my way up the agency world, moving further away from content marketing. I’ve done TV spots that played during the Super Bowl, more print ads than I can remember and enough social posts to make a social media influencer blush. And in all that time, I came to realize something—content marketing is the most honest, measurable and powerful way for a brand to make a true connection with their consumer. I’m back directing content strategy and leading the long-form writing team at Guaranteed Rate, the third-largest mortgage lender in the country. Buying a home is a confusing and emotional process, and the work that my team and I do make it simpler and smoother. That’s a really satisfying feeling. And the fact that the traffic to our Knowledge Center has gone from under 50K a month to over 85K just over a year later is really satisfying, too. To me, content marketing is the way a brand fulfills its mission to its customers, while marketing to them at the same time. You get to provide value, not just interrupt someone’s day. You can inspire, entertain, educate. Content marketing is about helping your customers with a problem that your brand is uniquely able to solve. And I like helping people.