Last week's silver lining for housing came in the form of mortgage rates, pushed lower by the cloud of financial market turmoil. The average 30-year fixed rate stayed near historic lows, while the average 15-year fixed rate hit a new low for records back to 1991.
The average rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) also made a new low for records since 2005. The Mortgage Bankers Association (MBA) reported purchase loan applications UP 5.1% over the week before and UP 5.9% over a year ago.
But buyers shouldn't be complacent. The latest MBA forecast says rates on 30-year fixed-rate mortgages could rise the last three months of this year and continue to go up next year.
Freddie Mac's Chief Economist sees the housing market "firming," citing CoreLogic's National House Price Index, up three months in a row. Another study showed the number of homes listed for sale in Q2 at its lowest level since 2007. Home values also fell at a slower pace in Q2 and 19 markets showed quarterly gains!
From my weekly enewsletter for real estate pros, INSIDE LENDING, for the week of Aug. 8, 2011
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