Where to from here? Disappointing data...

So the dog days of summer are officially over even if it does not say so on the calendar or on the temperature gauge. Kids have gone back to school and fall is right around the corner.

This can typically be a slow time for those of us that make a living in the real estate business. What is unusual for this year is that the summer purchase season was very slow. The data is out today that existing home sales in July were down way more than expected, to the tune of 27.2% over this time last year. Here is the article: http://www.mortgagenewsdaily.com/mortgage_rates/blog/168738.aspx.

Where are the buyers? With historical interest rate lows (think upper 3% on 15 year and low 4% on 30 year) there has never been a better time to finance the purchase of a home. Home prices have come back to earth as well. That being said it is obvious that the general public is not buying into the fact that the economy is rebounding. In talking with real estate professionals and potential buyers there is a general edginess to the normally exciting prospect of buying a house. Buyers are extremely cautious right now and are worrying more about their future job prospects, worried about overbuying (which is a good thing), and the feeling that they want to hold on to what ever cash they have instead of sinking it into real estate. Hopefully things will turn around soon because this slow down in purchases will have a tremendous effect on the economy. If people are not buying houses that means people cannot sell their homes. If they cannot sell their homes they cannot buy new houses, they may be forced to foreclose if they cannot afford the payment any longer, may not be able to take a new job out of the area, etc. Let's all hope this turns around soon.

As far as home refinancing, the time has NEVER BEEN BETTER. If you have an interest rate above 5.5% on 30 year money or above 4.75% on 15 year money it is at least worth it to look into your options. Depending on your loan amount, there could be substantial savings for you In our current market. Feel free to call us with any questions you may have about refinancing!