There are still doomers who insist the housing bubble is ready to burst. But this report coincides with what I see on the street – home buyers are in good shape, and probably aren’t going to bail out if appreciation stops.
In Q315, the average FICO for purchase loans was 755 (a record high), and only 20% of home buyers had a FICO under 700:
The young and old (without assets) are getting screwed. Right now inflation is the name of the game. With banks + the fed colluding to keep interest rates low and not flooding the market with foreclosures home prices are going to stay high.
Rents are going to stay as high as possible for landlords to recoup investment costs. House prices are also going to stay high because of limited supply and huge demand. It’s a tough double edged sword right now for buyers.