mortgageAny one working in the mortgage industry these past two years knows they have had record low interest rates fueling refinances. Now, more good news. Business is heading their way. The Mortgage Bankers Association’s (MBA) reports that the Purchase Index is the highest its been since May of 2010 and 12 percent higher than it was last year.

It is probably no coincidence that mortgage delinquencies have been on the decline. According to TransUnion’s Quarterly Delinquency Report: the national rate of loans 60 or more days past due fell 21 percent from the first quarter of 2012 to the first quarter of 2013, from 5.78 percent to 4.56 percent. (source: Mortgage Daily News)

Tim Martin, group vice president of U.S. Housing in TransUnion’s financial services business unit, called the change the first major decline in the national delinquency rate since the advent of the housing crisis and said, “We certainly expected improvement this quarter, as the housing sector is in recovery, but the magnitude of the improvement was unexpected.” He goes on to say: “The housing sector as a whole has definitely been improving with prices up, negative equity down and rates staying low. “That seems to have helped borrowers this quarter, some of whom have been delinquent for a rather long time, work their way out of the system at a faster pace.” (source: Mortgage Daily News)

This data isn’t only good news to individuals in the mortgage business, but will start generating more business for Realtors as well as providing hope to the average home owner. In a survey conducted by Fannie Mae, 51% of Americans are optimistic that home prices will climb over the next year compared to the same time last year where only 32% expected the increase. “For the first time in the survey’s three-year history, the majority of Americans surveyed now expect home prices to increase,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Crossing the 50% threshold marks a significant milestone as most Americans believe a housing recovery is truly occurring throughout the country.” (source: The Wall Street Journal)

If the majority of people remain optimistic about the housing market, purchases will continue being made by not only first time home buyers, but current home owners who a few years ago were not in the position to sell and then buy a new home.

We are seeing “hidden woes” for first time home buyers now entering the market with sellers receiving numerous offers above asking price on starter homes in the area.

Mortgage rates are low and homes are being sold. If you are in the market to refinance or purchase, we have years of experience in real estate law and can be of assistance. Contact us at: 508-660-8888 or visit us online at: www.attorneyjimbrady.com.