Mortgage rates continue to decline and home price increases are this weeks news for real estate.
30 year fixed rate mortgages are just over 5% with 15 years rates about 4.6%. Both numbers are close to all time lows.
Buyers are getting the message with house and condo offers up 9.4% last week. Refinance applications were up about 18%. The Integrated Asset 360 Index showed prices moving up 1.6% nationwide based on data from more than 15,000 zip codes. This was the largest increase reported by the Index since July 2005.
There appears to be a trend toward move up buyers and away from firt time buyers. Move up buyers represented 35%of the market in the first quarter of 2009 but rose to 48% in the second quarter. This is significant because the market ratio in recent decades has been 66% move up buyers with 33% first timers. Move up buyers tend to be less focused on distressed and foreclosed properties at low prices.
Several studies show sellers are getting about 90% of their asking price reflecting more realistic pricing strategies.
While this reflects a turnaround of the national real estate market, there are many markets that are continuing to decline because of rising foreclosures and high unemployment.
The bright spot is todays mortgage rates and lower prices translate to improved affordability for thousands of buyers making the word “turnaround” look very real.
Aug
3
