I heard someone earlier this week say that the housing market has gone from a slow crawl to a brisk walk. That is the perfect metaphor to explain the recent changes in the real estate market. The market is coming back. It’s not roaring, but it’s coming back.
This week, according to Reuters.com, U.S. mortgage applications jumped as record low interest rates spurred a surge in demand for home refinancing loans. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, increased 32.2 percent for the week ended March 20. Refinancing accounted for 78.5 percent of all applications.
The Mercury News headline this morning was "Mortgage Rates Drop to a Record Low."
Meanwhile, according to Realty Times, housing starts took a surprise jump of 22 percent in February over January's depressed levels.
Existing home sales are also seeing some good trends, and the West is leading much of the nation’s recovery, with California leading the charge. Our median listing price is beginning to rise for the first time in three years. Existing home sales in the West increased 2.6 percent to an annual rate of 1.2 million in February and remain 30.4 percent higher than a year ago.
After a week of positive indicators, the best advice is for buyers to get out there. There are some fantastic deals right now and as more people begin to realize it, competition will come back and begin to drive activity. You know what they say about the early bird!
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