Some Good News on the Housing Front

New single-family home sales also rallied in March, jumping a near record 27% from February’s sales pace of 324,000 to a seasonally adjusted 411,000, up 24% on a year-over-year basis. The South showed the biggest gain — 43.5% — and the Northeast was the second most robust region of the country for sales, coming in at 35.7%, although rebounding from an unusual low in February.

While the approaching expiration date for the home buyer tax credit accounted for much of the bounce back, unseasonably harsh winter weather in February added some pent-up demand to the housing market in March.

In order to qualify for the home buyer tax credit, buyers had to sign sales contracts by April 30 and they are also required to meet a closing deadline of June 30. Since new home sales are reported when a contract is signed, April new home sales should be robust. Existing home sales are recorded at closing, so they should see a lift from the tax credit through June.

To the extent that some prospective home buyers have moved their purchases forward to qualify for the credit, new home sales after April and existing home sales after July are likely to experience some leveling off. At that point, the reviving economy, low mortgage rates, affordable house prices and new job growth will take over as the forces driving home buying activity.

In the meantime, adverse credit conditions will continue to serve as a speed bump in the housing recovery as buyers grapple with tighter credit standards and builders attempt to overcome major impediments to obtaining and renewing acquisition, development and construction (AD&C) loans.

Builders also continue to face intense price pressure and competition from foreclosure and short sales. Appraisers are using distressed sales in their valuations of newly built properties without properly adjusting for the run-down conditions of many previously owned homes that have been languishing on the market. Pressure from banking regulators can further encourage “low ball” appraisals. For builders, unfortunately, poor appraisals often can result in lost sales.

Mortgage Rates Improving

Over the past week mortgage rates have slowly improved thanks to investors allocating their investments into risk-free Treasuries. This "flight to safety" has been driven by concerns that Greece and other members of the European Union may end up defaulting on their government debt obligations (also called sovereign default risk). This rush to less risky assets has pushed mortgage-backed security prices up, which allows Niles Home Loans to offer lower mortgage rates. If you are in the market for a new home, or if you want to lower your monthly payment, i strongly recommend a payment analysis for your particular circumstances. A consultation takes about 5 minutes and there is no cost to you.

Your Portland Oregon and Seattle Washington Mortgage Specialist

Our team is committed to providing our clients with the highest quality financial services combined with the Lowest Mortgage Rates available in Oregon, Washington, & California. I will work with you one on one to ensure that you get the best mortgage solution that is tailored specifically to meet your financing needs.

Whether you are purchasing your dream home, refinancing an outstanding loan, or consolidating debt, my highly experienced team will help you find the right loan program at the lowest rate no matter what your needs are.

Our ultimate goal is to create lasting relationships with each of our clients so that we may continue providing excellent service for many years to come.

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To speak directly with an experienced mortgage professional simply give me a call anytime or feel free to utilize any of the interactive tools offered on our site. I look forward to working with you and exceeding your expectations.

Portland Oregon - A Great Place to Call Home

With record low Oregon Mortgage Rates, the time refinance or to buy is NOW!
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