It’s not every day that I can share a triple dose of good news, but today is the day folks. Have a great day!
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Posts Tagged ‘Mortgage Rates’
Triple Dose of Good News Today!
Thursday, June 16th, 2011• • •
Price of Homeownership is About To Go Up
Wednesday, April 13th, 2011
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Pending Home Sales Index Points To A Budding Seller’s Market
Tuesday, December 7th, 2010
The Pending Home Sales Index surged 10 percent in October as low mortgage rates and low home prices spurred Salt Lake buyers into action.
A “pending home sale” is an existing home under contract to sell, but not yet closed. The Pending Home Sales Index is at its highest level since April 2010 — the contract deadline date for this year’s federal home buyer tax credit program.
The jump may also explain why home builder confidence is rising even as the number of new homes sold fades. Builders are seeing buyers’ renewed interest in housing first-hand and expect the next 6 months to be dramatically better.
On a regional basis, gains in October’s Pending Home Sales Index varied as compared to September. The Midwest led the charge, and the West was the laggard.
- Northeast Region: +19.6%
- Midwest Region : +27.3%
- South Region : +7.1%
- West Region : -0.4%
Home buyers should take last month’s Pending Home Sales Index to heart. According to the National Association of Realtors®, 80 percent of homes under contract close within 60 days, so we can reasonably expect November’s and December’s existing homes sales data to be similarly strong.
In other words, the housing market is heating up and may have already shifting toward sellers. Changes like that lower buyer leverage, and increase the cost of homeownership. Coupled with rising mortgage rates, the shift is even more defined.
The best time to buy a home this year may have already passed. The next best time may be right now.
Talk to your clients if they’re planning to buy a home in 2011. It may be smart to move up the time frame.
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Mortgage Rates Spike On Strong Retail Sales Data. Could 4 Percent Rates Be Done?
Tuesday, November 16th, 2010
If consumer spending is a key to economic recovery, the nation is on its way.
Monday, the Census Bureau released national Retail Sales figures for October and, for the second straight month, the data surged past expectation. Last month’s retail figures jumped 1.2 percent — the largest monthly jump since March — as total sales receipts climbed to a 2-year high.
Consumer confidence is rising, too. Though still below the long-term trend, confidence in the future up-ticked in October.
The current confidence reading is now double the low-point from February 2009.
It’s no surprise that both Retail Sales and Consumer Confidence are higher. They correlate in a common-sense-type manner. When consumers are more confident in the economy, they’re more likely to spend their money. This, in turn, leads to more purchases and rising retail receipts.
Unfortunately, for home buyers and rate shoppers in Utah , it also leads to rising mortgage rates.
Because consumer spending accounts for two-thirds of the economy, spending growth leads to economic growth. But it’s been a lack of growth that’s kept mortgage rates this low.
When the growth starts, the low rates end. It’s why mortgage rates have added as much as 1/2 percent over the past 10 days. Consider the recent “good news”:
- Retail Sales made a 2-year high in October
- Existing and New Home Sales showed big improvement in September
- Jobs growth returned in October
The days of 4 percent, 30-year fixed rate mortgages may be nearing its end. If you’re clients are floating a mortgage rate, consider the impact of rising rates that are surely on the horizon.
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