June Market Forecast and Pending Home Sales Up
Some developments from the National Association of Realtors:
Record low mortgage interest rates have brought pending home sales numbers up for three months in a row. Many of the buyers that are purchasing right now are utilizing the first time home buyer tax credit. About 45 percent of buyers across the country have been first timers- this is a number higher than the typical 35 to 40 percent in more normal markets. This is also less than in Arizona – where it seems to be nearly 50 percent of first time home buyers jumping at the opportunity to buy in the most favorable market conditions available in years and at fantastic interest rates. Pair that with the first time home buyer tax credit and it’s about the best opportunity out there we’ve seen.
June’s forecast shows good hope with the last three straight months of pending home sales on the rise. This is truly rock bottom mortgage rate pricing – and as we saw in 1994 to 1997 in years 3, 4 and 5 of the last Foreclosure market – it’s pretty likely that rates are going to hike up to at least 7 percent.
Warren Buffett has been saying he can’t see why it won’t follow trend.
Add this to all the Treasury auctions to help fund all the bail out and stimulus monies and it’s pretty apparent by simple rules of supply versus demand theory that there’s going to be way more supply versus demand. Rates have to go up – period.
Now’s the time to take advantage. By time you start hearing the “turnaround has happened” it will be too late – you will have lost your opportunity for “rock bottom” pricing and favorable conditions on all fronts.
