Interest rates on a U.S. home loan dropped across the board in the week ending May 8, but the 30-year fixed rate outpaced them all. As reported by Freddie Mac's latest Primary Mortgage Market Survey, the average rate for a 30-year fixed mortgage dropped to 4.21 percent from 4.29 percent the week prior.
The U.S. housing market may have slightly slowed its progress during the frozen winter months, but industry experts are anticipating that things will soon pick up and prices will be on the rise for the next 12 months.
Since the housing bust in 2008, a large number of homeowners have found themselves drowning in their mortgages. Negative equity was abundant, and when a homeowner owes more on his or her mortgage than the property is worth, that's considered being underwater.
The housing market's gradual recovery continues to face one major obstacle in many local markets: Limited inventory.
Despite a slight dip in existing home sales in June of this year, prices continue to go up and overall sales remain near a three-and-a-half-year high, according to the National Association of Realtors. While purchases of existing homes fell 1.2 percent to a 5.08 million annualized rate, a lot of that drop appears tied to smaller inventory and rising prices and mortgage rates, which doesn't necessarily signal a major dent in the housing recovery.
A new housing and retail development on Detroit's riverbank could encourage future homebuyers to get off the sidelines and into the homeownership game, as the units are geared toward young professionals. The $60 million project, which the developer hopes will be finished by early 2016, will include three- and four-story town houses, apartment buildings and mixed retail, according to The Detroit Free Press.
According to a recent report by CoreLogic, January 2013 saw the pending supply, or shadow inventory, of homes for sale down 28 percent from its all time high in January 2010. Shadow inventory is the combined number of homes that are seriously delinquent on a mortgage payment, in foreclosure proceedings or owned by the mortgage servicer (REO), but not currently listed on the market for sale.
Mortgages are often thought of as a two-person operation, but that trend is starting to shift in the real estate market as individuals are increasingly seeking home loans on their own. Buyers who choose to go it alone enjoy some unique freedoms – like not being tied to another person's credit or employment history. However, they also may encounter some issues that might surprise them.
The recession of the late 2000s scared a large number of homebuyers out of the housing market, but recent improvements and increased stability have helped lure millions of Americans back in. In fact, the last three months of 2012 proved to be one of the strongest quarters in recent years, which led many experts to declare that the housing market finally turned that all-important corner and re-attained some of its stability from before the recession.
Although the nation's housing market is a long way from recovering fully from the recession of the late 2000s, several indicators suggest that significant progress was made during the third quarter of 2012. In addition to improving in basic measurements of health like property values, the housing market has also seen a large reduction in the number of foreclosures left over from the economic downturn.