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2014-01-24 12:54:38
Housing Market Still Strong

Rising Interest Rates not Slowing Down Housing Market

 

Mortgage rates may be rising, but the housing market doesn’t seem to mind. In fact, several indicators have improved alongside rising rates.

Lenders are adjusting to the new lending rules and as a result the lending atmosphere is becoming friendlier, especially to first-time buyers. Simultaneously, the average time on market for non-distressed properties and the average sales-to-list price ratio both improved year-over-year in December.

HousingPulse research director Thomas Popik said: “Six months after the May-June 2013 rise in interest rates, the housing market is showing remarkable resilience.

This due in part because underwriting standards are getting a little looser, at Fannie Mae and Freddie Mac, as well.

The average credit score for GSE (*Government-Sponsored Enterprise)loans in the fourth quarter was 743, down from 758 a year earlier. Loan-to-value ratios at the GSEs rose from 75 percent to 76 percent year-over-year in the fourth quarter.

Fannie Mae and Freddie Mac increased their share of the purchase market as well as their share of the first-time homebuyer sector. In fact, the GSEs posted survey highs in both categories, according to the four-year HousingPulse survey. The GSEs accounted to 19.2 percent of purchase loans originated over the last three months of 2013, up from 16.5 percent a year earlier. The GSEs’ share of the first-time buyer market reached 19.5 percent, up from 14.1 percent a year earlier.

Looking at the broader market, time on market over the last three months of the year averaged 9.7 weeks, a decline from 12.4 weeks recorded at the end of 2012. The average sales-to-list price ratio increased from 95.5 percent at the end of 2012 to 97.1 percent at the end of 2013.

A year-over-year comparison of key metrics points to a housing market that was stronger at the end of 2013 than it was at the end of 2012.

Ok so what do all the numbers mean to those that are thinking of selling and or wanting to buy a home or investment property?

It's still a good time to realize your Real Estate goals…

 

*Definition of 'Government-Sponsored Enterprise - GSE'

Privately held corporations with public purposes created by the U.S. Congress to reduce the cost of capital for certain borrowing sectors of the economy. Members of these sectors include students, farmers and homeowners.

 

 

 
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2014-01-24 12:54:38
Housing Market Still Strong

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