The media portrays almost regularly now about the volatility of the current market, the struggling economy and the downward spiral of the stock market. The housing market has been on the chopping block so long that many people are placing the stock market and the housing market hand-in-hand down the same vicious isle. However, if you take a closer look, the housing market seems to be taking a much needed turn for the better.
Mortgage applications, according to the Mortgage Bankers Association, increased over the last few weeks by 12%. FHA mortgage applications alone rose 15.3% and conventional mortgage applications rose 6.5%. With all the negative media attention in regard to the economy, how could this possibly be?
It is really common sense if you take a close look at what is happening. There is housing demand out there, regardless of what the media may lead us to believe. The market is delivering below average home prices and mortgage interest rates are dropping, too. When you couple these incentives, ask yourself, who is going to be the first housing consumers to react? First time home buyers, of course! Why? The easy answer is that housing is now more affordable than ever. Add this to a first time home buyer not having to sell a home to purchase a home, and you really got something. When a first time home buyer sits down and does the math, they realize they can purchase a home for about the same amount they pay each month in rent. With housing deals out there and rates falling, first time home buyers have the demand the housing market supply craves.
If you look at some areas currently, they are actually seeing an increase in home sales: Florida, Phoenix, Virginia, New York, Kansas, Minnesota and Idaho. So, keep in mind that the housing market is not the stock market, and in some cases, can even react in opposite directions. The media has a way of influencing what we believe is the truth. Keep in mind that the consumer’s actions, you and me, can change the economic state we are currently in for the better and get all our housing markets back on track. Let’s all be positive, as we can see here, many other of our fellow Americans are.
**If you are a first time home buyer, or looking to purchasing a home, call Mary Rich at Apollo Home Mortgage Group for friendly, fast, professional service that will surpass your expectations and get you into your dream home fast! She can be reached at (218) 725-9000. Conventional, FHA and VA mortgage options available.**
