This Week in Real Estate News

This Week in Real Estate News

This week’s top stories in real estate industry news:

Inventory Levels on the Rise as Sellers Gain Confidence
Forty percent of Americans say now is a good time to sell a home — up from 30 percent last month and 16 percent just one year ago, according to a new survey by Fannie Mae. Rising home prices are helping to boost sellers’ confidence.

30-Year Mortgage Rates Climb Near 4% Range

For the sixth consecutive week, mortgage rates inched higher, continuing to climb from all-time lows, Freddie Mac reports in its weekly mortgage market survey. The 30-year fixed-rate mortgage—the most popular among home buyers—has now climbed a half percentage point since last month. 

A strengthening economy and positive employment report this month prompted fixed-rate mortgages to climb higher this week, says Frank Nothaft, Freddie Mac’s chief economist.

Until Mortgage Rates Hit 10.5%, Buying A Home Will Still Be Cheaper Than Renting
The recent rise in mortgage rates has made buying a house a little more expensive: the increase in the 30-year fixed rate over the past month from 3.4% to 3.9% (Freddie Mac) raised the monthly payment on a $200,000 mortgage by $56, or 6%. However, because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper than renting.

Economist Temper Housing Bubble Worries

Although home prices are likely to continue to rise in the next few years, the national market is not in danger of a bubble, according to prominent economists.

“Four of the next five years are likely to be improving years in the housing market. I don’t say five because there’s always the possibility of little hiccups in the housing market,” said Lawrence Yun, chief economist for the National Association of Realtors.

– See more at: http://www.inman.com/2013/06/10/economists-temper-housing-bubble-worries/#sthash.5HJGKrh4.dpuf

Economists temper housing bubble worries
Economists temper housing bubble worries

Although home prices are likely to continue to rise in the next few years, the national market is not in danger of a bubble, according to prominent economists. “Four of the next five years are likely to be improving years in the housing market. I don’t say five because there’s always the possibility of little hiccups in the housing market,” said Lawrence Yun, chief economist for the National Association of Realtors.