Has Housing Bottomed Out?

Many news outlets and economists are finally calling it an official housing bottom.  This is the result of the progress in the housing market over the past three months.  We added to that pool of positive housing news last week. 

The Case-Shiller Home Price Index showed that home prices were either flat or increased in 16 out of the 20 major markets that they monitor.  In a separate report, New Home Sales were up 11% which was the largest gain in over eight years.  While higher priced homes will continue to struggle for some time, mid to lower priced homes are really heating up.

What happened to rates last week?

We had a huge gain in mortgage backed securities last week which helped to push mortgage rates to their lowest levels in months.  The weak Initial Claims and GDP data along with a very successful 7 year Treasury auction combined to temporarily lower rates. We need to take advantage of these great rates before this rate rollercoaster changes again.

What to watch out for this week:

The following are the major economic reports that will hit the market this week.  They each have the ability to affect mortgage rates. I will watch these reports closely for you and let you know if there are any big surprises.

 

I monitor the trading of Mortgage Backed Securities; the only thing conventional mortgage rates are based upon. So I know if there is going to be a trend reversal in mortgage rates.

Contact me anytime for an industry update.

Dave Campagna
408-754-3846
dave@plazaloans.com

Advertisement