Economic summary for May 2013

Dated: 05/15/2013

Views: 1412

We saw some positive economic news last week. Americans filing weekly “Initial Jobless Claims” declined to 323,000. This was below expectations and the lowest level since January 2008. In addition, the four week moving average fell to 336,000, the lowest since November 2007.  This is very good news. 

In housing news, CoreLogic, a research firm, reported that home prices rose 10.5 % in March 2013 over March 2012. This was the biggest annual increase since March 2006 making it the 13th consecutive increase in home prices. There was also a 1.9 percent gain from February to March and prices increased in all states except four. However, home prices remain 25 percent lower than the peak of April 2006.

What does this mean for home loan rates? Because good economic news often causes money to flow out of safer investments like bonds and into stocks, it can negatively impact home loan rates, as they are tied to mortgage bonds.

However, although home loan rates may have slightly risen, they continue to remain near historic lows.

What does this mean for home buyers?  This is the time to make your move while mortgage rates are still low and before home prices get much higher.

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Janis St. Onge

I am a certified Short Sale and Foreclosure Resource (SFR) who works with first time home-buyers, empty-nesters and investors. Call me today and let me be your eyes and ears in the Charleston tri-cou....

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