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| More Housing Strength : New Home Sales Surge In June Posted: 28 Jul 2009 08:00 AM PDT
According to the Census Bureau, the number of new homes sold in June leapt by 11 percent from the month prior. It stands as the biggest one-month jump in 8 years. A "new home sale" is when a home in any stage of construction -- not yet started, under construction, or already completed -- goes under contract, often with a builder. It's the opposite of an "existing home sale". In addition to surging sales, the monthly supply of new homes fell to its lowest level in 11 years. Because home values are based on the relative supply and demand for a particular home in a particular area, anytime that demand for homes grows faster than supply, we would expect prices to rise. Indeed, that's what we've been seeing. The combination of low interest rates, seller-paid incentives and a first-time home buyer tax credit is bringing buyers into the market faster than new supply can come online. It's one reason why home prices have stopped falling across many parts of the country. It's also why home buyers may find it tougher to get "a good deal" in real estate later this year and into 2010. If demand stays high and supplies fall further, sellers should regain the upper-hand in contract negotiations.  |
| What's Ahead For Mortgage Rates This Week : July 27, 2009 Posted: 27 Jul 2009 08:00 AM PDT
Rates were much improved on Monday and Tuesday, much worse on Wednesday and Thursday, and idle for most of Friday. Overall, mortgage rates improved slightly but don't expect the volatility to subside. There is a ton of economic data scheduled for release this week -- at least one new data point per day, actually. Each could cause mortgage rates to rise or fall:
If the data points to a rosier outlook for the U.S. economy, expect that mortgage rates will rise. If data looks weak, rates should fall. There's another factor influencing rates this week, too, and that's the U.S. Treasury's plan to sell its most weekly debt in history. Across four separate auctions, the government is selling $115 billion in notes. If the notes are in low demand, bond prices will fall, pushing up rates. Indirectly, this should cause mortgage rates to rise. If demand is very weak, mortgage rates should rise by a lot. This week in mortgage markets is among the most eventful we've seen all year. Expect mortgage rates to be on the move.  |
Once again, the housing market is showing that its worst days may be over.
Mortgage markets carved out a wide range last week, creating a mixed bag for mortgage rate shoppers. | You are subscribed to email updates from Atlanta Real Estate -- Peter Bright, Mortgage Blogger To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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