Publisher's Watch

Both refinancing and home purchases supported by a drop in interest rates.

Home-loan demand surged sharply last week with a big emphasis on refinancing. A great portion of this increase is due to refinancing in a favorable interest rate environment. Mortgage rates are at their lowest since October 2005, according to the Mortgage Bankers Association(MBA).

In additon, last week also saw a sizable upward demand for home purchase loans as well. According to the MBA, home sales rose 4.9 percent last week, the highest increase since May of this year. Of course, one of the reasons behind the drop in interest rates has been the decrease in demand for borrowing. Such small wins at this time of the year are definitely welcome news at the end of what has been a tough year.

This topic was published as part of the House Media Network newsletter. Read this newsletter in its entirety at www.housemedianetwork.com/newsletter/13

• Home Sales | Leave a comment • Email Article

How about some good news about the housing market? Well, perhaps some not-so-bad news instead?

A new poll released by the online edition of the Wall Street Journal shows that the worst of the housing "downturn" may be over.

According to the survey, economists voted overwhelmingly by 2-to-1 that the worst is behind us. But what exactly does "the worst" mean? Basically, it's an indication that prices, while still not hitting the bottom, may not have much farther to fall.

In other words, the 49 economists who took part in the survey "expect home prices, measured by the government’s Office of Federal Housing Enterprise Oversight index to fall by 0.5 percent next year," contrasting an increase of 13.4% in 2005. If this is survey is on the mark, and with a significant pullback in new construction, this could be the soft landing we've all been hoping for.

This topic was published as part of the House Media Network newsletter. Read this newsletter in its entirety at www.housemedianetwork.com/newsletter/12

• Home Sales | Leave a comment • Email Article