Bozeman Montana Real Estate Information Archive


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New FICO Credit System Changing

by Tim Hart

The credit scoring system may be changing for the better, at least for consumers with a shakier credit history. FICO has introduced their new credit system that is aiming to be more loan friendly towards clients with past, but paid-off debts as well as those with medical debt. The new FICO scoring system will take settled bills into consideration when adjusting someone’s credit score. If someone had owed money in their past, with the old system, their credit could be retroactively affected for seven years. Now, old, but paid off bills should not affect their credit score as much as before.

The new FICO system will also remove the negative effects of having unpaid medical bills. Currently, 64.3 milion Americans’ credit scores are affected by these unpaid medical bills. By removing the negative impact of medical debt, some Americans may see their credit scores raise by 25 points. Considering that FICO scores are used to determine loan decisions around 90 percent of the time, many more people may find themselves eligible loan. Even more people will see their own rates lower, especially if they had been receiving less than friendly rates from banks. These new rates could greatly increase the number of Americans receiving loans and buying cars and houses.

Gallatin County Economy Continues to Thrive

by Tim Hart

Despite the fact that Montana’s economic growth rate has slowed in recent years, Gallatin County continues to maintain high economic growth. The county’s growth was driven by wages earned in the construction, manufacturing and service industries. From 2012 to 2013, the county added 2,500 jobs. That number was more than double any other county in Montana. Unfortunately, the amount of wages brought in was proportionally low at 28 million. Experts believe the low numbers simply reflect the generally lower wages that are given to these three sectors. But, the growth in the county still dwarfed the growth in any other Montana county.

For real estate, Gallatin County continued to look strong, coming in second for the most new housing startups. Gallatin County has plenty of potential for continued growth in this sector, as this data still only reaches to 76% of the pre-recession peak.

Source: Bacaj, Jason. “Gallatin economy growing, state slowing.” Bozeman Daily Chronicle. 6 August 2014.


by Brittney Dahlberg

“The combined delinquency rate on mortgages held by major banks dropped to 6.68% in the second quarter, the lowest level since the third quarter of 2009", according to Federal Deposit Insurance

For the first time in two years, the notorious bank failures REVERSED their trends that have been seen throughout this economic hard time! The FDIC (Federal Deposit Insurance Corporation) who insures deposits at 7,513 banks reported that in the second quarter of this year the FDIC’s Deposit Insurance Fund was POSITIVE.

What this means to the housing realm? Overall economic trends impact your mortgage. The dollar amount of delinquent loans between 30 days and 90 days dropped for the 7th quarter consecutively. Note: this is the absolute lowest it has been since 2007. Even if focus is placed on this quarter alone, there has been a 10% reduction in delinquencies since the prior quarter. 

It must not be forgotten that the summation of delinquencies is still $172 billion. We are not healed, but we are healing.   



Analysts say housing in on way up!

by Jon Prior - Monday Morning Cup of Coffee - Housing

Daily Real Estate News  |  April 25, 2011  |  Housing on the Way Up 

Analysts at both Standard & Poor's and Barclays Capital agree that the uptick in home resales last month is a favorable sign of things to come. Because pending home sales — an indicator of future activity — were up in February, S&P believes transaction volume will rise for April.

Barclays, meanwhile, says March's 3.7 percent gain in existing-home sales merely reinforces its position that the housing market actually hit bottom in late 2010.

Source: “Monday Morning Cup of Coffee,” Housing Wire, Jon Prior (04/25/11)

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