Ed's Blog

Last week mortgage applications surged up 11%, a good indication that the spring real estate season may have begun a bit early. According to reports from the Mortgage Bankers Association, applications for home purchase loans and refinance loans increased 11.3%.

Even better for homeowners and buyers is that interest rates on 30 year fixed loans are on average just below 5%, which is the second lowest level since 1990. These low interest rates combined with low home prices, appear to be driving buyers back into the market, as homeownership becomes bit by bit, more affordable.

Moreover, this good news comes on the heels of the passage of the Homeowner Affordability and Stability Plan which aims to help troubled homeowners to modify their existing mortgages.

I don’t want to jump the gun, but it’s beginning to look like things might be moderately improving for our troubled housing market. More buyers equates to less inventory, meaning that home values should stabilize. Moreover, with more lenders willing and eager to modify existing mortgages, as a result of Obama’s new plan; foreclosure rates should begin to decline.

Let’s all keep our fingers crossed that more good news like this is on the horizon!