The Raleigh real estate market has been better this year than in 2011, but that’s not saying much!
According to numbers derived from Triangle MLS, Raleigh/ Wake County saw 1,427 homes close vs. 1,178 homes in 2011. That’s a nice 21% increase, but sales are still over 35% lower than June 2006.
When will mortgage rates hit the bottom?
We have seen several home buyers recently quoted as low as 3.375% for a 30 year fixed rate with less than a 1% origination fee! A year ago the average was hovering around 4.5%. It’s very hard to tell someone not to lock their rate at these levels yet we keep getting lower. Actually, it’s crazy NOT to lock immediately as nobody knows when we’ll go back up and stay up. The funny thing is, once folks lock in they hear the weekly average rate dropped .001% and they want a better rate even though the rate they locked in at is lower than that average to begin with!
What do the unemployment numbers mean?
The employment picture has a can have a big effect on the direction of interest rates. Friday’s report said the economy created 80,000 jobs. That sounds good, right? Well, only sort of. We aren’t losing jobs, so that’s good. The markets were expecting about 100k new jobs so that isn’t good for the economy but is good if you want low rates. The theory is that a larger number of jobs needs to be created each month to help right the economy.
Ever hear the saying “Slow and Steady Wins the Race?” If the economy picks up too much steam that’s bad, as it creates inflation. Builders are building. Homes are selling and there aren’t as many foreclosures out there as there used to be. Maybe, just maybe, this is actually a good pace. Only time will tell!
What will Affect Mortgage Rates This Week?
Mortgage bonds continue to rally due to more Eurozone issues. They keep arguing over how they will actually implement the deal they reached 10 days ago so that mess will continue for a while. In addition to that, we’ll see: Economic reports on Trade Data Wednesday, Weekly Jobless Claims on Thursday, Producer Price Index and Consumer Sentiment on Friday. Minutes from the last Fed meeting will be made available to the public on Wednesday and we’ll sprinkle in Treasury auctions of 3, 10 and 30 year notes throughout the week.
Mortgage rates are incredible and if you would like to take advantage of them, reach out to Pat Wynn at NewBridge Bank in Raleigh to learn what he can do for you. He will help you understand what your best opportunities are so you can make a decision that will work best for you and/ or your family.
Pat Wynn, Newbridge Bank 919-787-9357 (direct)