There is one word to describe the current real estate market: optimistic. Despite months of negotiations on a housing bubble and rising mortgage rates, the outlook for real estate are good.
The concerns of the bursting of the housing bubble seems really low for the owners. In a national survey by ING Direct, has experienced most people will experience some growth in value of housing over the last 12 months. The average increase was about 6%, with the owners in New England and Pacific states, with the strongest growth. The values of homes in South Central States about the same.
Most owners do not seem concerned about the slowing housing market. Almost 74% of respondents who owned their homes for more than three years remained optimistic about the value of their home.
The 30-year fixed rate is at its highest point in four years. However, as it turns around 6 per cent, it is still relatively low compared to the extremely high rates in the 1980s, when mortgage rates above 10%.
According to Freddie Mac, there are signs of a strong economy, which explains why mortgage rates have increased recently is. Consumer confidence is rising and sales of existing homes increased. This can be attributed to a positive labor market. As most know, leads to more consumer spending healthy employment.
Consumer perception is everything. With advice from other than real estate is a good investment, people continue to buy and sell houses. It’s good for buyers, sellers, homes, property sellers, banks and just about everyone associated with the real estate industry.
