Good Morning!
I’d ask where spring went, but then I remember that we live in Minnesota. I’m pretty sure spring doesn’t start around here until May. Anything earlier is just good fortune. Hopefully you didn’t have to spend too much time in traffic today.
Rates have held steady over the past week with no real news shifting the market for investors after Japan’s tragedy added to the Mideast turmoil that had been building steadily for a while. So, how is the housing market lately? Well, it really depends on who you ask. We are still in a market that is predicated on first time homebuyers that are looking to take advantage of the best deal they can find. Most often I am seeing that this comes down to purchasing renovated or recently foreclosed homes. This is great for the first time homebuyers but it leads to the conundrum of not being able to get the entire housing market moving. The main issue is that buying homes from banks and renovation company’s instead of other homeowners ends up limiting the amount of homebuyers who would be looking to upgrade or expand their housing situation in the higher valued home category. Until this pattern changes, I don’t foresee the stagnation reversing even with the low rates. That being said, this could be a good sign for 5-7 years from now when the new homebuyers coming to the market today end up wanting to make more space for a family or simply convenience.
Rates: 30 year fixed at 4.75% and the 15 year at 4.00%, FHA: 4.50%: As always rates change with individual credit scenarios and programs, with credit in the mid 700s and a 20% down payment these rates are what you should be seeing.
Have a great week!
Thanks
Matt
Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970
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