Mortgage Rates Inch Up Again, It's Time to Buy

Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), which found that both fixed- and short-term mortgage rates continued to rise this week. This was the fifth week in a row where fixed-rate mortgage rates were up.

30-year fixed-rate mortgage (FRM) averaged 4.83 percent with an average 0.7 point for the week ending December 16, 2010, up from last week when it averaged 4.61 percent. Last year at this time, the 30-year FRM averaged 4.94 percent.

What does this mean to you, the buyer? It means rates are still low but inching up. Rates are still lower than last year. So, perhaps you should get while the gettin's good? It may be time to buy before rates go up much higher.

Bullish on the Rochester Real Estate Market

It really is beginning to look like the local real estate market is about to experience another shift. A positive one this time! The basis for the 2010 real estate market shift is pent-up demand, fueled by government stimuli and low interest rates.

There is no question that the 2009 federal tax credit for first time homebuyers helped stimulate real estate sales. Many new buyers, however, remained on the fence at the end of the year. Some were cautious but many others were just joining the market in the fall and did not have a selection of new listings to choose from. These holdovers, along with new market entries enticed by the extension and expansion of the tax credits for both first time and move-up homebuyers, both groups poised to take advantage of continuing low interest rates, present a motivated pool of home buyers.

In spite of increased market activity last year, sales of homes in the upper price points languished. Home buyers were active at the $200,000 price point and below. Sales of homes listed above this threshold were slower and virtually non-existent higher up the market. There seemed to be no compelling reason to buy at the $300,000 and up price point. As a result, and unless personal circumstances trumped otherwise, there was no compelling reason to sell at this level either.

Is there pent up buyer demand at the higher price point? Are sellers at the higher price point confident enough to finally join the market? Whether this ready pool of buyers will help sales at the upper end of the market remains to be seen but I am quite bullish on the market

There is significant evidence that we are in the midst of an economic recovery. Sellers at the upper market level who have been patiently waiting for a recovery smell the opportunity. I am expecting to see a large influx of new listings at the higher price points this year. Entry level buyers will re-create the market activity of 2009 at the affordable end which will cause move-up buyers to take advantage of the stimuli expansion and lower rates and help create a market at the middle and upper ends of the market.

Call me overly bullish but I see the potential for this market shift firsthand. I am blessed to be part of the Mark Siwiec Team within the RE/MAX Realty Group organization. Our team alone will be putting approximately $8 million of listings on the market within the next several weeks. We are ready for the market to take-off. Are you? Check out our new listings at www.realestateonthemove.biz

30-Year Mortgage Rates Fall to 4-Year Low

Daily Real Estate News January 25, 2008
Housing industry observers are hopeful that the recent decline in mortgage rates will lead to a recovery in the market. Freddie Mac reports that interest on 30-year, fixed loans fell for the fourth straight week, landing at their lowest level in nearly four years. Economists say mortgage rates averaged 5.48 percent for the week ended Jan. 24 -- down from 5.69 percent a week ago -- because of the latest reports about the economy and because the Federal Reserve made its biggest cut in 20 years to a key interest rate. Freddie Mac also reports that rates on 15-year mortgages declined to 4.95 percent from 5.21 percent, rates on five-year adjustable-rate mortgages dropped to 5.13 percent from 5.4 percent, and rates on one-year ARMs slipped to 4.99 percent from 5.26 percent. Source: Baltimore Sun (01/25/08) © Copyright 2008 Information Inc.

Reprinted from Realtor Magazine Online, The Weekly Real Estate News, December 2007, with permission of the NATIONAL ASSOCIATION OF REALTORS. All rights reserved. http://www.realtor.org/realtormag