According to the Mortgage Banker’s Association, applications for home purchase loans shot up 42% last week on a non-seasonally adjusted basis compared with the week before. All this during the ordinarily quiet holiday season.
A sure sign buyers are jumping ‘off the fence’ and pulling the trigger.
The indicators are all supporting this decision to jump into the homeownership pool. Interest rates are at an all time low (with an expected increase in 2010), inventory is healthy (yet being absorbed at the fastest pase in over a year), first time home buyer credits of up to $8,000, $6500 tax credit for qualified buyers, prices reduced in most markets (but stabilized in many markets), and a market condition in favor of the buyer!
Frddie Mac declared home prices nation wide rose about 1 point on average during the 3rd quarter and 4th quarter activity has been even better.
Realty Trac states there was an 8% drop in November’s filings of delinquencies and foreclosures across the country. November makes the 4th month of declines in such filings.
Seller’s are ready, buyers are ready and brokers are ready…. let’s go shopping.