How Cash Sales Affect Mortgage Originations
MCLEAN, VA--(Marketwired - Aug 17, 2017) - Freddie Mac (
Outlook Highlights
Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.
"Usually, not many people like to invest a lot of cash into real estate, which is illiquid and has high transaction costs. However, in the current, highly-competitive housing market, a cash offer is an effective way to gain an advantage over other bidders. In a cash sale, the seller doesn't have to worry about the buyer's ability to obtain a mortgage or the chances that an appraisal will come in below the agreed sales price. And each cash sale means one less mortgage origination."
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac's blog FreddieMac.com/blog.
Contact Information:
CONTACT:
Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com