| Home Sales Increase 23% in Southern Markets |
 The weather isn't the only attractive thing about the South this time of year! The National Association of Realtors released a report Monday that October home sales were up 23% from last year's numbers. Experts credited the increase to low interest rates, affordable homes and the $8,000 tax credit.
Contrary to this good news, the median price on homes dropped 7% to $151,500 in the same 18 Southern markets. While re-sales on foreclosures are driving values down, many markets now report decreases in foreclosure inventories and expect a slow and gradual increase in median price to follow.
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| Interest Rate Movements |
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A good rule of thumb regarding interest rate movements is that bad news for the economy is good news for interest rates. With that being said, this morning's release of the 3rd Quarter Gross Domestic Product (GDP) revision revealed a downward revision, as expected. It revealed a 2.8% annual rate of growth during the third quarter that nearly matched forecasts. This means that the economy did not grow as much during the 3rd quarter than previously thought. That is good news for bonds and mortgage rates, but since the 2.8% increase was nearly what analysts had predicted, the impact on this morning's trading and mortgage pricing has been minimal.
As far as specific programs are concerned, interest rates on ARMs (adjustable rate mortgages) and Jumbo mortgages (loan amounts greater than $417K) have suddenly become very note-worthy.
We have ARM rates starting in the mid-3%s and fixed, Jumbo rates as low as 5.25%
If you are in the market for an ARM or a Jumbo mortgage, on a purchase OR a refinance - check out our Rate Quoter for a quick and easy interest rate quote. |
The last 2 years have proven (to me, at least) that true strength can be found through our weaknesses.
