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The Markets and the lack of a bang for the FTHB tax credit!

By
Mortgage and Lending with Qivana NMLS # 17358

(Part of this blog is from a system I subscribe to by David Hershman)

 

The Markets


Rates fell back in the past week. Freddie Mac announced that for the week ending April 15, 30-year fixed rates were down from before. The average for 15-year fixed also fell. Adjustables decreased as well with the average for one-year adjustables falling slightly and five-year adjustables decreasing to. A year ago 30-year fixed rates were at 4.82%. "After rising for four consecutive weeks, rates eased back to where they were two weeks ago and still remain historically low," said Frank Nothaft, Freddie Mac vice president and chief economist.

"The Federal Reserve indicated in its April 14th regional business survey that consumer prices generally remained level and producers had difficulty passing along increases in some raw materials. This will likely keep inflation at bay as evidenced by the 1.1 percent growth in core consumer prices for the 12-months ending in March 2010, which was the lowest annual increase since January 2004. Low rates continue to help stabilize the housing market. The Fed noted that residential activity increased while home prices were stable across most of its 12 Districts over the six weeks prior to April 5th. In addition, credit standards remained generally unchanged across the nation, while credit quality was mixed according to the report." 

All in all, we just aren't seeing the rush for first time home buyers to take advantage of the tax credit. Absorption rates still indicate that there are more homes than buyers. One of my Realtor associates did an analysis on North Kingstown, RI homes between $450k and $550k finding only 9 sales from 30 listings in the last 6 months. After a conversation with the Realtor and a Financial Planner, we are anticipating further stabilization of the RI Real Estate market with no indication of increasing values any time soon.

If you'd like to work with a pro, who surrounds him self with pros, look no further!

Sean Wheelan
Personal Mortgage Consultant
The Mortgage Group, Ltd
401-965-9384 Cell
SWheelan@TMGLtd.biz Email
www.TheFriendlyNeighborhoodMortgageGuy.com Web Site
508-276-0171 Fax

Comments (2)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for posting. We always learn a lot from Active Rain blogs. Best Regards,

Apr 21, 2010 03:39 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for posting. We always learn a lot from Active Rain blogs. Best Regards,

Apr 21, 2010 03:39 AM