The Housing Market is showing a slight increase according to real estate experts. The low rates on thirty year mortgages seem to be the impetus for the modest increase in sales. The rates are just above record lows of less than four percent and have been for the last three months. If an individual can qualify for a mortgage, purchasing and refinancing are very attractive.
In addition to the improved home purchases and the increase in applicants for mortgages, refinancing was over three fourths of all activity in the housing market. However, much activity is attributable to the administration’s refinancing program. Obama’s improved Home Affordable Refinance Program, HARP, is responsible for over a fifth of refinancing on the national level.
There is an air of optimism among new home builders. Home prices may increase because of the reduced supply of homes. That supply is at the lowest level it has seen in the last seven years.
Nationally, residential prices reached a peak in 2006 and fell by a third in the period between then and now. Economic experts refer to single family residences in the Housing Market to be at a reduced value when taking both rents and incomes into account.