Real Estate is in ‘Slow Recovery Mode!’

by on May 5, 2009

All signs are pointing to the fact that the Real Estate market is on a modest uptrend.

New mortgage applications were up last week by 77%. And a friend who is a notary said that last month Wells Fargo processed 78,000 loans in California. That’s a lot of refinances and purchases for the lending giant.

One of the things which is fueling this buyer uptrend are interest rates. The average rate for a 30 year fixed conforming loan is 4.7% and for a 15 year fixed it is 4.5%. Jumbo products are showing up more and more as banks loosen there purse strings a little on properties that require jumbo financing.

Meanwhile, another indicator of good times comes from the IRS which reported that nearly 600,000 first time home buyers claimed the $7,500 tax credit in 2008 or $8,000 in 2009.

If you need further convincing, consider this… BofA is hiring 5000 new loan agents across the country to handle the increase demand for home loans.

Nationally, home prices rose by 7/10th of a percent in April.

So, the big question for most home buyers is, ‘Have we hit bottom?’ and the answer seems to be ‘Yes!’

For more information, don’t hesitate to call me at 800-275-7010 for all your real estate needs!

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