Mortgage Business

Welcome to 2012 – Better Expectations for Housing – Mortgage Rate Update

Sue & I welcomed 2012 by walking in the Hair of the Dog 10k/5k Race in Bethany Beach to raise funds for the Quiet Resorts Charitable Foundation. I was a sponsor of the race and was very happy to see almost 700 people participate in the event – awesome. Here’s a picture of my banner hanging from the balcony at Mango’s on the Boardwalk.

Banner_at_hair_of_the_dog

As we enter the new year, I wanted to share with you some key points recently made by the Wells Fargo economics group regarding the housing market:

Most of the economic reports dealing with housing have shown a little more strength recently. New home sales rose, sales of existing homes climbed, and new home construction has also improved lately. Low mortgage rates, an improving job market, and some reported easing in mortgage underwriting standards has raised hopes that the momentum will carry over into 2012. The news has not been universally positive. The latest S&P/Case-Shiller data shows price declines accelerating in October. The 20-city index fell 0.6 percent in October and has tumbled at a 6.4 percent pace over the past three months. Home prices are down 3.4 percent over the past year. Moreover, price declines have been fairly widespread, with 16 of the 20 markets surveyed reporting price declines in October. The sharp drop in home prices over the past three months should raise some caution flags for those expecting dramatic gains in 2012. That said, 2012 will be a better year. We have slightly increased our forecast for the next two years, which marks the first time we have raised our expectations for housing in any significant way in well over a year.

Mortgage rates held steady this past week and best execution 30 year fixed rate pricing is at 3.875%. Here’s the link to my rate sheet online if you want to forward it: Baxter Rate Sheet

Have a great weekend and never hesitate to contact me if you need something – hit the cell, send an email, pop a text, or contact me on Twitter or Facebook. And, if you need to get a buyer pre-approved? Just send them to my secure online application – Baxter Online Mortgage Application – Click on “Start Your Application”

And here’s an easy way to introduce me to clients when you make a referral. Send them to my About.Me Profile: Click Here

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