With June upon us, the market activity will only increase as home sellers and buyers get down to business to ensure they are settled into their new digs by the start of the school year.
Ready to toss your hat into the real estate game? Real estate experts at Forbes have complied a list of things you should know as you venture into the scorching selling season.
Busiest Month of the Year
Nationally, the volume of home sales in June is typically 29% above the annual average, according to Trulia. In July and August, inventory keeps climbing as some sellers miss the sales peak. Homebuyers begin their search in March and April, but they really get down to business after Memorial Day. The peak in June and July sales reflects the fact that many people want to move in summer when school’s out and the weather’s good. In fact, more buyers are ready to close deals in the summer than any other time of the year. So get your house ready and on the market now, and take advance of the surge in activity.
Mortgage Qualifications Loosening
Fannie Mae (FNMA) and Freddie Mac have just announced that they’re loosening some bank lending rules. Accordingly, in April, Wells Fargo & Co., the biggest U.S. home lender, cut its minimum credit score for borrowers of Fannie Mae and Freddie Mac-backed loans from 660 to 620, following similar moves from smaller banks. Thus, there may be a bit more qualifying flexibility for hopeful homebuyers come end of the summer.
Interest rates on 30-year fixed-rate mortgages rose from a record low of 3.31 percent in November 2012 to 4.58 percent in late August. But optimistically, rates fell last week to 4.21 percent. And falling rates are just another incentive for those summer homebuyers.