If you’re already signed up for the MentorLynx weekly newsletter, then you’ll notice we highlighted this exact article in the newsletter. I, JT, created the newsletter toward Thursday evening. Usually, I create the newsletter earlier in the week. I sent the article for comment to MentorLynx Mentor and Trainer Eric Von Heal and he responded as soon as he got it; however, by the time I received his response the newsletter had already been sent out. With that out of the way…
Article: Purchase Mortgage Applications Post Largest Rise Since May
Author: Nick Timiraos
Publication: Wall Street Journal
Full Article
Quick Summary of Article:
The housing crisis might be double-dipping; however there was a small positive signal last week. Wall Street Journal Writer Nick Timiraos wrote that new home-purchase applications increased by 6.3% from the previous week due to near-record low mortgage rates. “Purchase applications hit their highest level since the end of May, but home-buying activity is still way off of levels seen earlier this year, when tax credits juiced sales,” wrote Timiraos.
Comment:
The loss of the tax incentive has caused sales to decrease but with 30-year fixed-interest rates at 4.5% and real estate prices as low as they are, anyone considering buying a home should act now. The market prices of 4-5 years ago were so high that many people could not afford to purchase a home. The market conditions of today make home buying a reality for a larger segment of the population. With the concern of interest rates increasing, this window of opportunity will not remain for long.
Comment By:
MentorLynx Mentor and Trainer Eric Von Heal
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What are your current and potential buyers saying about current housing prices?
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