No Bull Agent
Information in this post is provided by Ron McGowan, Senior Mortgage Consultant with PrimeLending. He is a guest blogger who provides us information from a lender’s perspective. For additional information on Ron, please visit his website at ILoanSanDiego.com.
Inside Lending Newsletter from Ron McGowan for the week of July 19, 2010
INFO THAT HITS US WHERE WE LIVE…Some analysts feel the homebuyer tax credits artificially boosted the housing market by pushing forward home sales that would have happened later. Others feel most buyers would have bought anyway. In any case, there’s now concern about a coming drop in sales. Well, June sales figures should still benefit from activity spurred on by the tax credits. And tax credit sales should even help monthly reports through September, now that buyers in contract on April 30 have been given until September 30 to close.
Nonetheless, we ought to keep an eye on monthly Pending Home Sales, which track signed contracts that turn into sales a few months out. Even though we may have a sales dip after the tax credit, the fact remains that near historic low mortgage interest rates are getting people back into the market. These rates, combined with today’s prices, have made homes more affordable than they’ve been in years, letting many buyers move up to better neighborhoods with more choices.
But buyers shouldn’t wait. The National Association of Realtors chief economist sees the median home price rising nationally 2% to 3% this year. Read the rest of this entry »