2010 Real Estate Wrap Up

1. Goodbye tax credits: The federal first-time homebuyer tax credit program was extended and expanded to include repeat buyers in June. The program stimulated sales in the first half of 2010. According to a NAR survey, the program also helped push up the share of first-time homebuyers to a record 50 percent of all homebuyers from July 2009 through June 2010.

2. 30 year mortgages rates hit a record low: 30 year mortgage rates were as low as 4.17% November for well-qualified borrowers, the lowest since 1955.

3. Credit scores on FHA insured loans have been raised: Several lenders have raised the minimum credit score on FHA insured loans from 620 to 640.

4. FHA grows role in lending: FHA insured more than 1.1 million purchase mortgages during the 12-month period ending Sept. 30, including 882,000 loans taken out by first-time homebuyers.  The loans FHA insured in 2010 have the best credit characteristics in the program's history, with 57.2 percent of borrowers having FICO scores above 680 and only 1.3 percent under 600.

5. California posted the nation’s 3rd highest foreclosure rate in the 3rd quarter. According to RealtyTrac, California alone accounted for 22% of the national total in 3rd quarter, with 57,378 properties receiving a foreclosure filing during the month, the nation’s highest state total.