Yost Realty Group Newsletter

30 Year Rates Fall Below 5 Percent – thinking about buying or refinancing?

  Mortgage rates dropped to their 11th straight weekly decline, reaching new record lows, according to Freddie Mac. Interest rates on 30-year, fixed rate mortgages averaged 4.96 percent this week, down from a previous week's 5.01 percent.

The low rates have caused a spike in home refinancing loans and a welcome relief to cash-strapped home owners facing a slowing economy and rising unemployment rates. For those homeowners with FHA loans, a streamlined refinance process is available that does not require an appraisal, and in most cases does not require any costs out of pocket.

"The fact that interest rates have dropped to a record low is an important development since more affordable home financing could help bring buyers back to the market and prevent some of these foreclosures," says Lawrence White, professor of economics at New York University's Stern School of Business.

 

 

Notable Local News

Buyer Activity in Casa Grande and Phoenix Real Estate Market Shows Substantial Year-Over-Year Improvement
 
According to Trans/WorldNews on 1/15/09, the Phoenix real estate market is experiencing significantly stronger buyer activity for the start of 2009 as compared to one year ago. 
The overall Valley is off to a solid start with "Pending" or under contract sales activity for the beginning of the year beating years 2006-8 and even slightly greater than that seen in 2004, prior to the market run-up.  The stronger turnout bodes a positive but early sign that buyer demand is more robust and could be a good indicator for overall 2009 performance versus 2008.
Though serious market challenges remain for the year and their conclusion uncertain, many cities across the area are showing greater buyer activity than in the year prior. 
In Casa Grande, the same increase in buyer activity is occurring, with a 16% increase in the number of sales at the end of December 2008 vs. December 2006. December pending sales usually decrease with most homebuyers focused on the holiday season and activities. This chart shows pending sales as a total percentage of available homes for sale from December 2006 through 2008.
 
Arizona was the second fastest-growing state in 2008!
Where populations are increasing is where people will be buying homes.
On December 22, 2008 the U.S. Census Bureau released good news for Arizona.
2.3 percent between July 1, 2007, and July 1, 2008. This percentage increase represented 146,759 people.
A population increase of 146,759 people means 48,920 housing units were needed. How economists come up with 48,920 housing units is by dividing the numeric population growth by the average number of people per home (146,759 / 3 = 48,920). A housing unit is defined as an apartment rental, residential rental, new home or resale purchase. This increase in population is a fundamental that helps reduce the oversupply of homes. Reducing the supply of homes helps stabilized our residential market.
Leading 5 States / Equivalents by Population Change:
July 1, 2007, to July 1, 2008
Top 5 Fastest-Growing
Top 5 Numeric Gainers
State
Percent Change
State
Change
1. Utah
2.5
1. Texas
483,542
2. Arizona
2.3
2. California
379,132
3. Texas
2.0
3. North Carolina
180,820
4. North Carolina
2.0
4. Georgia
162,447
5. Colorado
2.0
5. Arizona
146,759