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Mortgage Update – Summer 2012

July 16, 2012

A heat wave has hit most of the United States, but unfortunately it has yet to spread to the housing market. The good news, however, is that there are definitely bright spots beginning to emerge.

  •  Average Home Prices Are Higher Than Last Year

According to CoreLogic, home prices in the U.S. rose 2% in May 2012 over the previous May and were also up 1.8% from April prices. Home appreciation appears to be more robust in the lower-priced segment of the market, says CoreLogic Chief Economist, Mark Fleming.

  • The number of home purchase contracts is up, reports the National Association of Realtors. The number of pending home sales is up 13% higher this May over last May.
  • Mortgage rates continue to move down.  Interest rates, driven down by declines in manufacturing and consumer spending, are at the lowest levels ever recorded, and they continue to break new records each week. The 30-year fixed rate loan has hit a new low or matched its lowest rate in 10 of the last 11 weeks.
  • Conversely, the cost of renting is rising due to higher demand. Trulia’s figures are that rents have risen from last year in 24 out of the 25 largest rental markets. With the cost of buying a home at an all time low, and rents at their highest, many potential homeowners who are staying out of the market now due to uncertainty about housing or the economy just might find themselves reconsidering.

Ask us about tools, such as our Free Preapproval and Second Opinions, that are especially well-suited for first time homebuyers who may be ready to give up renting, but aren’t sure about the next steps. These excellent services provide your buyers with information they need to feel confident in their decisions, and they allow you to set yourself apart with distinctive offerings that put the client first.

Source: CoreLogic, National Association of Realtors, USNews.com

From Loan Officer Joy James

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