Housing Getting Better | What is Happening to Rates in the Bay Area

June 24, 2009

More improvement in housing:
The nation’s builders reported that new housing starts increased 17.2% from April to an annualized rate of 532,000 units. Also, new building permits jumped 4%.

While the overall numbers are still some of the lowest historical numbers for housing starts, they are marked improvements from our recent lows and another signal that housing has bottomed and that we are starting to see a rebound in demand for housing.

While interest rates have been volatile, they have remained below 6% for some time. Buyers need to take advantage of these great home prices now while they still can. Now that demand has started to pick up, it will eventually start to pressure pricing.

What happened to rates last week:

We enjoyed our best 30 year fixed rates in June on Wednesday…briefly. We enjoyed a nice run up in mortgage-backed securities after a very weak Consumer Price Index Report. However, by the end of Wednesday, we gave up our gains and started a -109 basis points drop off (rates got worse) by Friday.

Rates are extremely volatile and will continue to do so until we climb out of our recession and have some global financial stability. Please don’t make any assumptions about rates – call me and I will make sure that you are up to date with the latest pricing trends.

Until Next time Here is to your success! Jason Wheeler 866-833-7413 | Come to a FREE Bay Are Seminar |

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