What does the market look like right now?

Here is some great info on the current market from my associate David Skow. He is a wealth of information. I love to share this kind of info with our clients, thanks Dave!

INFO THAT HITS US WHERE WE LIVE… The standard response from the pundits to last week’s 1.3% drop in Pending Home Sales for July could make it hard to maintain a positive approach. The typical explanation was that the drop was all due to the recent uptick in mortgage rates. But the truth is, slightly higher mortgage rates are only causing a drop in refinances. That’s because for buyers, mortgage rates are still historically       low and home prices remain attractive. Supporting this, the Mortgage Bankers Association Purchase Loan Index was up 2% for the week ending August 23 and is up 6% on an annual basis.

Here’s some more positive news ignored by the pundits. Even with the small monthly drop, Pending Home Sales were up 6.7% in July from the year before. In fact, they’ve now beaten year-ago levels for 27 months in a row. Those eager to report the end of the housing recovery were also disappointed to see the latest S&P/Case-Shiller Home Price Index. Home prices in 20 major metros were up 2.2% in June and are up 12.1% year-over-year. And this time around, all 20 cities posted both monthly and annual gains.

Definition of the day:

A pundit (sometimes called Talking Head) is someone who offers to mass media his or her opinion or commentary on a particular subject area.

DID YOU KNOW?… A recent report showed that if there were no housing bubble and home prices simply rose at the historic average of about 3.6% a year, they’d be almost right where they are today.

Thanks again for the info Dave!!!

Dave Skow Loan Officer 2200 6th Ave Seattle WA 98121 cell (206)714-9745 Eagle Home Mortgage

 

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