For a second stratight month, home prices were up. Prices climbed 2.2% compared with a month earlier, according to the S&P/Case-Shiller 20-city home price index. Inventories and interest rates are very low, what do think is going to happen.
Archive for July, 2012
Mortgage Bankers Association seasonally adjusted index of refinancing applications posted the biggest jump in seven months, rising 21.6 percent as mortgage interest rates hit record lows. But the gauge of loan requests for home purchases, a leading indicator of home sales, dipped 0.1 percent.
Homebuilder sentiment jumped six points in July on a monthly index from the National Association of Home Builders. It now stands at 35. Fifty is the line between positive and negative sentiment, but this is the largest monthly gain recorded in more than a decade, and the highest level since March 2007.
Less than five percent of the national apartment supply was vacant this past spring, according to Reis, Inc. That’s only the third time that’s happened in over thirty years. Mortgage rates are still below 4%. Do the math and it makes sense to buy now.
The American Bankers Association said consumer delinquencies fell in 10 of 11 categories it tracks. The ABA said the first quarter was another period of strong improvement and that we’ve moved back to historical norm. Continuing this trend will improve credit scores and increase the number of buyers eligible for a mortgage.
A small piece of the puzzle to improve the housing market. Thomson Reuters/PayNet Small Business Lending Index, which measures the overall volume of financing to small US companies, jumped up in May. The gain reversed most of the declines of the prior four months. Increase lending shows small business confidence, which leads to hiring and higher pay. Eventually those employees buy real estate.