Hopeful Signs in the Market
In recent days, there have been more hopeful signs in the market to benefit both buyers and sellers of homes. First, the Fed has stated that it is going to provide more support to both Freddie and Fannie, which should help make mortgages available. Second, although rates have risen slightly in the past two weeks, they are still at historic lows, and there is no time like now to get a 30 year fixed rate loan in the low 5's. Third, home values have again risen for the 4th consecutive month. While still well below a year ago's levels, this movement is encouraging.
While it remains to be seen how long the recovery will take, or whether anything might derail it, it appears that, overall, we are a bit past the bottom. One possible danger to the continuance of the recovery is the shadow inventory of over 7 million foreclosed homes that the banks still have not released into the market. Depending on how, when and in what numbers these come to market could have a major effect on the recovery.