Most of the data I share is compiled from the Multiple Listing Service, but this week I'll be presenting data from the US Dept of Housing and Urban Development (HUD) on the FHA single family mortgage portfolio. The data is especially relevant for the sub $250k market and first time home buyers, which are very active right now in Cincinnati. Here's what we see:
- Median mortgage loan amount increased 6.1% from Mar-Oct 2018 to Mar-Oct 2019.
- Median interest rate decreased from 4.88% to 4.50% from Mar-Oct 2018 to Mar-Oct 2019
- The combined effect is a 1.6% increase in the principal and interest payment.
- Nine zip codes account for about half of all FHA loans in Hamilton county.
- In the top zip code, 45238, 32.6% of transactions were financed using FHA loans. The nationwide average is 10-12% typically.
- Double digit increases in mortgage amounts from 2018 to 2019 were found in 45248, 45030, 45212, 45237, 45247, 45233, 45216, 45227, 45205.
- The mortgage amounts increased at least 20% in three zip codes: 45212, 45233, and 45205.
Key takeaways are:
- Prices are increasing, but lower interest rates have offset some of impact on buyers.
- Changes in home prices are uneven by zip code, with some declining and others increasing by double digits.
- If selling a home where buyers with FHA financing are likely, it's important to review the minimum property requirements for the program to identify potential issues early before they are found by the appraiser.