Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

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Bottoming Out? Report On Home Prices

The bottom in home prices we’ve been looking for may finally be here.  Case-Shiller reported earlier today that home prices for April increased in 17 of 20 major cities.  Only Detroit spit the bit, falling 2.1% while Boston and NY took a seasonally adjusted nick of .1%.  Year on year the index improved from -2.6% to -1.9%, good news for us in the housing industry (see chart below).  The not so good news of the day came via Consumer Confidence which fell 2.9 points to 62.0.  The disappointing news marks four consecutive months of declines.  Weak labor markets, European chaos, and a pitiful political scene did the damage.  Within the index, future expectations dropped 5 points (see chart below).  The Fed reported that services activity gains 2 points to plus 7.3 although consumer confidence slipped leading to a slowdown in spending growth.  The Richmond Fed had mixed results in June with manufacturing slipping 7 points yet services revenue jumped 9 points. 

Home prices have showed consistent improvement this year. However, other technical signs such as consumer confidence (below) are keeping it in check. There appears to be a balance between good and bad news. With this balance of highs and lows it appears that growth will continue, albeit very slowly.

Mortgage interest rates remain phenomenally low! Freddie Mac’s weekly survey data for June 21, 2012 shows the average 30 year fixed rate at 3.66% with 0.7 points paid. This really could be the best time ever to purchase or refinance a property. Many markets still are experiencing extremely low housing supply. This continues to create multiple offer situations and place upward pressure on home prices. What’s holding you back from taking advantage of this opportunity? Give me a call. Nothing ventured nothing gained. Or send me an email at sstorace@primelending.com

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