So what is happening in the market these days? Is the economic stimulous packages recently put into play helping? It can be hard to know what is going on. But, a few things are being said about recent events and trends in the market. The story below is a look at the housing trends and market and whether we are "at the bottom" as provided by Monica Pruett Smith, Sr. Mortgage Consultant for American Mortgage Group.

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Housing Bottom On The Horizon:

What is a housing bottom? One of the primary reasons that we have experienced a housing slump is because we have had more supply of homes than we have demand. A housing bottom occurs when the supply and demand start to normalize and once we reach the bottom, we will start to see price appreciation again.

Let’s take a look at last week’s events that are starting to shine a light on our housing bottom. Frank Nothaft, Chief Economist for Freddie Mac stated that he felt that U.S. home sales are near a bottom. Both New Housing Starts and Building Permits continued to decline which helps to lower our supply. The University of Michigan’s Consumer Confidence Report was at its best levels since September which is interesting considering our unemployment levels, but that helps the demand side of the equation.

Remember, you make money when you buy your house not when you sell it. With interest rates at or near 50 year lows and with loan programs that only require 3.5% down, market conditions are right to finally make your move before the market turns around…because once it does turn around…you’ve already missed your opportunity.

What happened to rates last week?

The Mortgage Backed Securities (MBS) market had another roller coaster week.

From Monday to Wednesday we gained +43BPS in pricing which helped 30 year fixed mortgage rates fall to some great levels.

But from Wednesday to Friday we lost -40BPS in pricing which increased rates and we ended up right where we stated on Monday.

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 know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. 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.

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Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572

p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team & Our Performance GUARANTEES!!