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Monday, August 6, 2012

8 Signs Housing Is on the Mend

Daily Real Estate News | Monday, August 06, 2012

Some Americans are still jittery over the housing market, but here are eight positive signs that should quell some of their fears.

Housing prices are on the rise across the country.
Foreclosures have slowed. Analysts suggest that as the supply of distressed homes slows, buyers will be forced into higher-price properties too.
Inventories of for-sale homes on the market are decreasing. In fact, inventories of for-sale homes have dropped 24 percent from a year ago.
Mortgage rates are at ultra record level lows, for those who can qualify
Housing starts rose 6.9 percent in June. Also, existing-home sales were up 4.5 percent higher in June compared to one year ago.
Home building stocks are on the rise.
For investors who are buying homes, rents are soaring, allowing them to cash in on their investments. Rental prices are at a 10-year high as median units rent for $710 a month.
Home affordability is at record highs for the median income family, due to falling home values and super low mortgage rates. In fact, a recent study found that it is cheaper to buy a home than rent in basically ever major city in the U.S. For those who buy, you can save the cost of renting by owning the home for five years or less.

But while the signs point to a housing market on the mend, some Americans still remain hesitant. Many Americans are still underwater on their mortgage, owing more on their home than it is currently worth. Also, the economy continues to weigh on the recovery, particularly a dampening employment outlook, which analysts see as tied to housing.
Still, The Wall Street Journal concludes in a recent article that if you take into account all the positive signs lately in the housing market, “housing presents an attractive long-term investment that should hold steady or even have upside surprise in the short term.”
Source: “Finally, It Is Time to Buy a House,” The Wall Street Journal (Aug. 1, 2012)

Neal Buckner, Broker/Owner, REALTOR®, CDPE

(520) 280-2766

Email: info@eliterealestatepros.com

Friday, July 27, 2012

Mortgage Rates Continue Record-Breaking Streak

Daily Real Estate News | Friday, July 27, 2012

The 30-year fixed-rate mortgage -- the most popular choice among home buyers -- is now a full percentage point lower than a year ago, Freddie Mac reports in its weekly mortgage market survey. Fixed-rate mortgages have been on a record-breaking streak the last few weeks, pushing home affordability even higher.
"Market concerns over the strength of the economic recovery brought long-term Treasury yields to new lows this week allowing fixed mortgage rates to reach record levels,” says Frank Nothaft, Freddie Mac’s chief economist.
Here’s a closer look at rates for the week ending July 26:

30-year fixed-rate mortgages: averaged a new low of 3.49 percent, with an average 0.7 point, beating last week’s previous record of 3.53 percent. A year ago, 30-year fixed-rate mortgages averaged 4.55 percent.
15-year fixed-rate mortgages: averaged a new record low of 2.80 percent, with an average 0.7 point, dropping from last week’s previous record-low of 2.83 percent.Last year at this time, 15-year rates averaged 3.66 percent.
5-year adjustable-rate mortgages: averaged 2.74 percent, with an average 0.6 point, rising from last week’s record low of 2.69 percent. Last year at this time, 5-year ARMs averaged 3.25 percent.
1-year ARMs: averaged 2.71 percent, with an average 0.5 point, also rising from last week’s 2.69 percent average. A year ago, 1-year ARMs averaged 2.95 percent.

Source: Freddie Mac