Shelter Six:  Stock Market Down, Credit Scores Up

1. The Dow Jones stock index plunged more than 1,000 points last week shaking up the financial markets but having only a minor impact on mortgage rates.

2. FICO consumer credit scores continue to surge hitting a record high of 704 last month.  Scores have slowly climbed each year since a low-point of 686 in 2009.

3. The main reason for increasing credit scores is that fewer people have truly awful scores that drag the average down.

4. Shelter’s new SmartFunds program is a fantastic solution for a retiree or someone who has significant financial assets but no current job or employment income.

5. The program requires the assets to have been seasoned for at least a year and sufficient to cover the loan amount and all monthly debt obligations for 5 years (minimum of $500K).

6. The SmartFunds program does not have a Debt Ratio requirement, requires only 10% down with no PMI, and at least a 680 credit score.

Rate Update

Last week’s weaker than expected CPI inflation data along with the stock market selloff led to mortgage rates moving slightly lower yet still near the highest level in eight years.

This Week

Retail Sales will be released on Monday, the minutes from the Sept 26 Fed Meeting and Housing Starts on Wednesday, and Existing Home Sales on Friday.

October 15, 2018 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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