Housing is Still in Demand

Unlike the uneasy stock market, housing has experienced a correction in its market over the last 2 1/2 years.  It no longer appears to be on a downward slide, but is now starting to even out.  In fact, there is a huge demand for housing right now, particularly with first time buyers wishing to cash in on the great deals out there.  Interest rates went down again last week (30-year fixed rate loans went from 6.5% to 6.24% and 15-year loan rates went from 6.14% to 5.9%), encouraging investors to jump in the market.  Last week alone, new mortgage applications increased 12%, FHA loan applications were up by 15.3% and conventional loan applications were up 6.5%.  Pending home sales across the country went up for the second straight month this year, ending 1.6% higher in September 2008 than in September 2007.  Don’t expect the housing market to recover overnight.  Instead, the market is more like the turtle…slow and steady wins the race.  Over the next two years, housing numbers may not soar, but they are expected to steadily increase.  For more information on the Ozaukee and Washington County real estate market, please contact me.