Daily Dose

According to a new report, the average FICO score of an American mortgage borrower has hit its lowest point since 2008. Currently, the average borrower has a FICO score of just 729. Broken down by lender type, borrowers of bank-originated loans have an average FICO score of 743, while borrowers of independent, non-bank loans have an average score of 719.

Existing home sales took a drop in April as prospective buyers and middle-income homeowners faced problems in the current housing market. Tightening supply continues to drive up prices. Properties, on average, stayed on the market for a month.

New analysis shows that buyers in Pittsburgh need just $31K to purchase a median-priced home in the area. Cleveland and Cincinnati also require low salaries, while San Francisco, San Diego, and Los Angeles buyers need the highest salaries in the nation. San Fran buyers need salaries of $161K in order to buy.

The Court of Appeals rehearing of the Consumer Financial Protection Bureau (CFPB) took place Wednesday to determine the constitutionality of CFPB’s leadership structure. Previously brought by PHH Corporation in October, the initial decision by the court determined the CFPB was, in fact, unconstitutional. Wednesday’s hearing was an “en banc” review, previously agreed upon in February.

Quarterly house prices were up for the 23rd time in a row, according to the FHFA’s Q1 House Price Index report. They were also up year-over-year for the 21st time in a row. But Q1’s rate of growth nationally was a lightweight compared to quarterly growth rates of the past few years.

The Federal Reserve will release the minutes of its April meeting on Wednesday afternoon, and if industry experts are on track, they could point to another rate hike on the horizon. Regional Federal Reserve Presidents Neel Kashkari, Robert Kaplan and James Bullard have all weighed in on the issue. The Fed previously raised rates from 0.75 points to 1 in March.

Freddie Mac’s latest summary report reveals an increase in both its total mortgage portfolio and its mortgage-related securities. Its mortgage portfolio rose 0.5 percent over the year, while its mortgage-related securities and guarantees jumped by 2.1 percent. The government-sponsored enterprise has funded $127 billion mortgages year-to-date.

Potential home sales fell by 0.2 percent to 5.69 million in April, according to a recent study. This represents an 89.3 percent increase from the market potential low point reached in December 2008. What the study found is that strong consumer demand fueled gains in market potential for existing home sales, but this was offset by high prices and falling affordability.

Several HUD programs are slated to be cut according to the recent budget proposal, including the Community Development Block Grant (CDBG) Program. According to HUD, the CDBG Program has not been effectively targeting the poorest communities and has not demonstrated a measurable impact on communities. Other programs are to be cut due as HUD states that State and local governments are better-positioned to serve their communities’ needs in place of these programs.

New residential sales statistics came out Tuesday from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. According to the National Association of Realtors (NAR), the drop in new home sales for April could be worrisome for first time and low-income homebuyers as inventory shortage is likely to cause the price of new homes to rise more than it has previously. As it stands, newcomers to home buying will continue to face financial and availability challenges.