Tag: mortgage rates

Home Prices to Rise in 2012

Higher Home ValuesSome more great news has just been released in regards to the housing market. No longer are the days of dark clouds looming overhead. We now have a clear-cut indication that things are improving (all be it slowly, but still improving). Overall home values are expected to begin rising as early as the end of 2012 and the total amounts are bit higher than most had expected to hear about.

Financial analytics company, Fiserv, recently released their findings on the housing market and the direction it’s headed.  They found that homes will gain an average of 4% value each year, for the next coming five years. Meaning your home is expected to rise a total of 20% in value over five years. Some great news for homeowners as many people have been shied away from selling their homes all because of the low values of today’s market.

Find how much your home is worth by using our valuation tool Michigan Home Value Estimator.

Further numbers showed that the short-term forecast doesn’t look amazing as home values for 2012 are expected to drop 0.8% from where they were last year. This means we have not yet reached rock bottom home prices just yet. Once we get closer to 2013 however, we should start to see the trend of lower home values finally reverse.

This does come across as a double-edged sword though. As home values begin to rise and sellers begin to feel more comfortable in putting their homes on the market, more buyers will begin to become discouraged by the rising prices. It’s quite obvious that the housing market will remain a buyer’s market for a couple years yet to come.

So to those of you looking to purchase a home before prices rise, now may be your last chance!  With the combination of historically low mortgage rates and rock bottom home values, now it the most affordable time to buy a home in Michigan. To get pre-approved to start shopping for a home contact Riverbank Finance before you the lowest home affordability in history. You can call a licensed loan officer at 1-800-555-2098 or complete the form below.

Buy a Michigan Home before Prices Rise

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Jobs Reports Reflect Lowest Unemployment Rate in 2 Years

Jobs Reports RasingThree months in a row we have seen the unemployment rate drop for us non-farm payrolls.  According to this morning’s jobs report we are now under 9% unemployment rates at 8.9%.  Employers added 192,000 jobs in the last month alone with manufacturing, business, education and healthcare.  This is the lowest unemployment rate since April of 2009.  The jump is the biggest monthly raise in job numbers since May 2010.

Analysts agree that the economy is on its way to recovery and the unemployment rate will not rise again to 10% in the foreseeable future.  The growth will be credited to  manufacturing and middle income opportunities for the auto industry and related industries as we see the economy slowly recover to a point it was a few years ago.

In terms of mortgage rates, this positive growth will most likely attract more money to the stock market with the Dow Jones Industrial Average futures up 1.59% at 12,258.20 this morning at 8:45 AM. The 10 year treasury note is also ticking up at 3.57.  Experts report that there should not be a large change in mortgage rates because the market expected these numbers and made corrections in prior days.

Mortgage rates should start slightly higher than yesterday.  If you are in the market for a mortgage to refinance your home or purchase a new home I would recommend locking your interest rate.  These positive jobs numbers show opportunity for future recovery of the stock markets which will reflect negatively on mortgage rates.