Mortgage Rates Drop, Inventory Shrinks, Housing Starts Up - What a Week

On Thursday Freddie Mac reported that mortgage rates have reached a new low of 3.79% on a 30 year fixed rate mortgage and 3.04% on a 15 year fixed rate mortgage.  Frank Nothaft, vice president and chief economist, Freddie Mac  noted   "The European debt crisis overshadowed improving economic indicators for the U.S. and allowed Treasury bond yields and fixed mortgage rates to ease for another week...."
On Wed the Mortgage Bankers Association reported that Mortgage Applications rose 9.2% from the previous week.  This trend has been continuing for a few weeks now.  While a percentage of this increase is due to refinance activity, it continues to put more money into the economy and foster continued growth.
On the home construction front there was also good news.  Housing starts rose to an annualized rate of 717,000 homes in April, well above the market consensus forecast, and construction on one-family homes increased to its strongest pace in three months.  Moreover, homebuilder confidence in May reached its highest reading since January 2008 according to the NAHB/Wells Fargo Housing Market Index.
According to the National Association of Realtors (NAR) the number of homes listed for sale in March fell to 2.37 million.  That equates to roughly a 6-month supply at the current sales pace, which is considered by NAR to be a balanced market.  "One of the most important developments in the past year for the residential real estate market has been the significant decline in the inventory of homes for sale. In West Palm and Boca Raton, the number of homes currently listed is down 21.61 percent from a year ago," said Tom O'Grady, president and CEO of Pro Teck Valuation Services.
Everywhere we look there is more evidence that the market is changing.  It is not an isolated figure or one part of the puzzle this time, but instead several indicators all pointing in the same direction. 
If you would like information about what is available or the value of your home just contact us at 561-862-9858 or send us an email to the Vogin Team and we will get you the information you need.

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