Is the market looking up for you and your real estate business? If not, it should be showing signs of improvement soon according to the latest report issued by Freddie Mac. Although financing rates are certainly not at the lowest they’ve been in the past year, the good news is that the overall market outlook is looking better than it has looked in a long time and we have increased home sales, returning home construction and better buyer affordability to thank for that.
The latest Primary Mortgage Market Survey(R) (PMMS®) report published by Freddie Mac shows that mortgage rates have continued to climb for a third consecutive week, closing the month of May with a 30-year fixed rate near 3.59%—nearly a quarter of a percentage point higher than what it was on May 1st. This rate, however, is still significantly below last year’s average around this time, which was around 3.78%. Adjustable-rate mortgages, however, have maintained a steady rate for most of the month, with only the 5-year ARM rising slightly by one percentage point.
According to the Vice President of Freddie Mac, Frank E. Nothaft, “While [higher rates] may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks.”
In addition to the positive outlook in financing, April’s reports for sales show a strong increase for both new home construction and existing home sales. To add to this good news, the National Association of Realtors stated that during the month of April 2013, the days a house remained on the market decreased from 62 to 46 days, showing that there are buyers out there looking for homes and making quick decisions.
Getting pre-qualified for a mortgage is becoming the standard for these homeowners looking to buy, so encourage your clients to pre-qualify before shopping. It helps when they (and you) know the price range for which they qualify and makes the process go a lot smoother for everyone involved. And as the summer heat approaches… isn’t that a good thing?