Home prices across the nation rose 5.5% November to November according to CoreLogic, who also forecasts a 4.6% appreciation rate in the year ahead. Including distressed sales, home prices in Utah are still 11.0% under their peak 2007 value (9.1% excluding distressed sales).
The DOW is down another 100 points this morning after yesterday’s 300 point slide. It would seem that this new year is bringing with it concern over just how robust our economy actually is. Low oil prices and a new congress are just not as inspiring as they used to be.
Mortgage Bond pricing is bumping up against resistance not seen since March of 2013. If we can get through this threshold, interest rates could drop another 1/2%…
Existing Home Sales are up marginally for the April reporting period from 4.59M to 4.65M annualized units sold. These are an increasingly number of bonafide buy/sells and not distressed properties. A report out from Black Knight (not sure who that is) today shows that foreclosure starts have dropped 40% since April 2013. From someone who originates mortgages, this a great step in the right direction. On the side of the coin, yesterday Fannie Mae said that “the housing picture remains worrisome” in its release of the May 2014 Economic and Housing Outlook, citing year-over-year volumes declining with Existing and New Home Sales. They went on to say that they anticipate a “modest uptick” in housing as the spring/summer buying season progresses. Continuing the dour outlook, the Fed expressed concern about the employment prospects of those who continue to be unemployed. These pooh-pooh prognosticators are keeping the demand for mortgages high and interest rates low.
Thank you for voting my company the Best Mortgage Company in Utah Valley this year. I am fortunate to have the best clients in the State and really love helping families formulate and achieve their goal of home ownership!
Bond pricing is up 13% YTD so far this year, the largest returns for that period since 1995. Higher price means lower rates! Speculation that monetary policy makers here and abroad will continue the current pace of economic stimulus is at the root of the gains. Mortgage Bonds have blown through all resistance levels and are currently at 12 month highs. Interestingly enough, today’s price is exactly what it was one year ago when rates were on the way up. Let’s hope that rates continue to trend lower!