Market News: Since the FED has backed out the MBS market and the expectations that rates would go up as much as 1/2 of 1% thankfully did not materialize, will we see the same with our purchase market now that the tax credits are expired. The National Association of Realtors expects activity to decline following expiration of the home buyer tax credit. Resales are projected to rise 4.3 percent, compared to NAR's forecast in April for a 6.5 percent increase for the year; but the group now anticipates a jump of 6.9 percent in sales of new single-family homes, compared to an earlier call for a 0.6 percent gain. NAR also expects resale home prices to rise 2.5 percent this year, down from the previous prediction of a 2.7 percent increase, and prices for new homes to rise 3.3 percent, better than the previous forecast of a 2.7 percent increase. We will know before the month is out for sure.
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