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Community Corner

Interest rates are to high. WHAT!!!

Housing data on foreclosures and single-family home sales points to a recovery.  Ok so we have foreclosures DOWN!

"There were about 949,000 homes in some stage of foreclosure, down from 1.4 million a year ago. That foreclosure inventory represented 2.4 percent of all mortgaged homes, down from 3.4 percent in July last year". - See more at: Banker & Tradesman 

We have single-family homes sales UP!

"Sales of Massachusetts single-family homes increased significantly in July, rising more than 18 percent over July 2012, and posting the highest sales volume for any month since June 2006, according to the latest report by The Warren Group, publisher of Banker & Tradesman." - See more at: 
Warren Group

However we have mortgage applications declining for the third week in a row as the 30 year mortgage rates rise to 4.80 percent, according to the Mortgage Bankers Association. I must be missing something because a 4.80% mortgage rate is a still a GREAT rate!  In August of 2007 prior to the global recession the Federal Home Loan Mortgage Corporation's (Freddie Mac) 30 year fixed rate mortgage was 6.57%.  Today's rates are artificially low as the Federal Reserve-funded fiscal stimulus plan or QE (Quantitative Easing) is targeted toward our nation's economic recovery including the housing market. The Federal Reserves $85 billion monthly purchase of Treasury bonds and Mortgage-Backed Securities (MBS) has allowed for the low mortgage interest rates we have experienced in the past few years.  But with a housing recovery gaining strength, unemployment rate falling and our economy showing signs of a recovery, one might consider the possibility that the Federal Reserve decreases its monthly purchases of Treasury Bonds and MBS.  

In summary a decrease in the FED's purchasing program means we could see higher rates.  So is a 4.80 percent 30 year mortgage interest rate "to high", "going higher" or a "great rate"?

Now is a perfect time to buy or sell a home!  If your interested in buying a home or selling your existing one, I would like to help you.  Please contact me,  Roger Martin - Century 21 Commonwealth at 508.598.1934 or roger@realestateinmassachusetts.org  for a FREE Consultation and Comparative Market Analysis.  

Get the ADVANTAGE of working with one of the areas most valuable Real Estate professionals with over 20 years of experience as a licensed General Contractor in residential home construction, renovation and design.

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