Doing the Charleston!

Thought for the day:

'Life should  NOT  be a journey to the grave with the intention of  arriving  safely in an attractive and well preserved  body, but rather  to skid in sideways – wine in one  hand - chocolate in  the other - body thoroughly used up,  totally worn out and screaming 'WOO  HOO, What a  Ride'   

Recoveries are often imperceptible in their earliest stages, but the status of the housing-market recovery is no longer imperceptible. Prices of residential properties listed for sale rose in 22 of 26 major markets during April, with prices in 18 markets posting price increases 3 months in a row, according to a report published by Altos Research and Real IQ,

Pending home sales also offer hope that the sales pace will continue to accelerate through the summer months. The National Association of Realtors’ pending home sales index, a forward-looking indicator based on contracts signed in March, increased 3.2%, posting its own 3 month sequential increase.

The one notable piece of negative housing news is the number of borrowers who are underwater on their mortgages. Thomas Lawler, an independent housing economist, stated the obvious by noting that borrowers who owe 30% or more than their homes are worth are more likely to walk away than those who owe just 5% or 10% more.  However, as foreclosure news goes, it's worth noting that the number of borrowers who owe 30% or more than their homes are worth are still a relatively small percent of mortgages outstanding, and most are concentrated in Las Vegas , sections of northern California, sections of Florida, and Phoenix .

The employment situation could be better, but the fact that employers cut fewer jobs in April compared to March is viewed as a sign that the worst of the recession has passed. Granted, many economists still expect the unemployment rate to rise to 9.5% by year's end, but April's numbers suggests the rate of increase is abating

Mortgage rates have been relatively stable for the past month, but are now creeping higher. Given that yields on Treasury securities have been rising at an increasing rate over the past two weeks, these rate increases come as no surprise. The 10-year Treasury note – a benchmark for the 30-year fixed-rate mortgage – jumped over half a percentage point last week, one of its biggest increases in months. My fellow REALTORS and I have spent the past few months encouraging qualified buyers to contract on a home and lock in your mortgage rates ASAP. Now, the absolute best rates may be gone, but those who act soon will still get some of the best interest rates seen in decades.

For first time homebuyers (or those who have not owned a home in the last 3 years), please be smart enough to take advantage of the $8000 tax credit combined with low interest rates, and allow yourself to realize the American Dream of homeownership.

Here are this week's upcoming economic reports: