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Mortgage Rates Moving
Mortgage rates were moving all sorts of ways as the first month of the new year came to a close. Some were up, some were down and some haven't moved at all, according to the weekly survey by Freddie Mac.
"Mortgage rates were mixed on news that December's leading indicators, a measure of future economic activity, signaled steady growth in the coming months," the company's chief economist, Frank Nothaft, explained. The 30-year fixed-rate mortgage averaged 6.25 percent with an average 0.4 points
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as January drew toward its end.
The average for the 15-year fixed-rate loan was 5.98 percent, also with 0.4 points, while One-year Treasury-indexed ARMs averaged 5.49 percent with an average of 0.5 points.
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Moving On
 North and South Carolina were the top destinations for movers last year, according to United Van Line's 30th annual migration study. The survey is based upon more than 227,000 interstate moves. Alabama experienced its fourth consecutive year as a high in-bound state. Tennessee also captured a spot on the high in-bound list, but it saw fewer people moving in 2006 than it did the year before.
The Western region was a top migration area, too, with Oregon second only to North Carolina. Nevada has been a high in-bound state since 1986, but Arizona saw roughly 5 percent fewer people moving in last year than it did the year before. Last year was the first in the last 25 that Minnesota had more people coming than going. |
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Opportunity Knocking for Many Buyers
 Consumers considering a home purchase should contact a RealtorŪ to take advantage of the current environment now, said NAR President Pat Vredevoogd Combs.
"Many media reports about trends and developments in the housing market are on a national level and don't capture what's happening in individual communities across the country," said Combs. "As local real estate market conditions continue to evolve, savvy consumers rely on the guidance of real estate professionals who are immersed in the industry."
As inventories rise, many buyers have increased negotiating power, but are unsure of how to structure the best deal. Sellers, however need help positioning their homes in a competitive marketplace. |
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Gradual Rise Projected
For Home Sales
 After bottoming in the fourth quarter of 2006, existing-home sales are forecast to gradually rise through 2007 and into 2008, while new-home sales should turn around by summer, according to the latest forecast by the National Association of Realtors.
David Lereah, NAR's chief economist, said annual totals for existing-home sales will be fairly comparable between 2006 and 2007. "We have to keep in mind that we were still in boom conditions during the first quarter of 2006 with a high sales volume and double-digit price appreciation," he said. "We are starting 2007 from a relatively low point, so even with a gradual improvement in sales it'll be pretty much of a wash in terms of annual totals. The good news is that the steady improvement in sales will support price appreciation moving forward."
Existing-home sales for 2006 are expected to come in at 6.50 million, the third highest on record, with a total of 6.42 million seen in 2007. New-home sales in 2006 should tally 1.06 million, the fourth highest on record, with 957,000 projected this year.
The national median existing-home price for all of 2006 is expected to rise 1.1 percent to $222,100, and then gain 1.5 percent this year to $225,300. The median new-home price, after rising only 0.3 percent to $241,600 in 2006, is projected to grow 3.0 percent in 2007 to $248,900. |
