Californians who sold their homes in the second quarter netted large profits. Also, the end of federal COVID jobless benefits will have a huge impact on renters in the state, CalHFA helps record number of first-time buyers, and record-low rates are luring younger buyers — and saving all buyers and owners a ton of money.
As the economy reopened in June, home sales followed as the always important summer home-buying season got hot despite the ongoing uncertainty of the COVID pandemic.
Forbearances jump in state
With millions of Californians out of work, the almost 6% of mortgages in forbearance in the state could eventually become homes in foreclosure.
Big profits for sellers — and much equity for owners
Homes sold generated hefty paydays for sellers, and many owners are now equity-rich, owing 50% or less on their mortgage than the current market value of their home.
Long-term rates dropped to a new all-time record low for the week ending Aug. 6. It’s the eighth record low in 2020.
30-year: 2.88% vs. 2.99% a week ago
15-year: 2.44% vs. 2.51% a week ago
Source: Freddie Mac