A lot of folks have been inquiring on where home prices and mortgage rates are heading for the future and based on the information out there let me share what I have found. On August 27, 2013, The S&P Down Jones Indices shared in their latest report of where home prices are heading. (us.spindices.com) for more information. The data compiled on the month end of June 2013, are showing most real estate losses since 2006-2008 have bounced back and home prices are selling close to the marks before the real estate crash in 2006/2007. Its now showing prices to stabilize and prices to slow down since we have had a up tick in prices from 2008 through June of 2013. Phoenix had the 2nd largest rebound from its lowest in September 2011 up today by 37.1%. But the indicators are showing prices leveling off, which a very good sign of healthy real estate recovery. So with prices back to highs in most areas from 2006 and 2007, we will see prices level off. But this now allows folks who do want to sell and move onto another property to finally get from under the property.
As for interest rates, we saw most of 2012 and half of 2013 with the lowest mortgage rates in the last 40 years. In the last few months we have seen an increase of about 1-1 1/2 percent higher rates, but these new rates are still at 30 year lows. So even though the rates are not as low as we once saw, we are still seeing very attractive interest rates for long term borrowing. We are also seeing the mortgage market stabilize as new regulations and guidelines were set in the place over the last 5 years. Default rates on mortgages have gone down. However, banks are still in a much tighter and conservative lending pattern. I do not see this trend changing anytime soon, since government regulation has created some safeguards to keep these guidelines strict. So basically this means, that you will need to work with a lender who not only knows how to structure your mortgage loan package correctly, but also can analyze the guidelines to get the loan approved.