Housing Confidence

While conditions continue to show signs of improvement, favorable mortgage rates are helping housing market confidence amongst consumers. According to Fannie Mae's National Housing Survey for August, 35% of survey participants expect home prices to rise over the next year. Consumer attitudes, while stabilized, increased from August 2011. When asked about mortgage rates, 40% of consumers expect low  rates are too good to last and will rise within the next 12 months. The National Association of Home Builders/First American Improving Market Index reported that a net total of 19 housing markets were added to the list. To be included in the Improving Markets Index 3 increases must take place: the number of housing permits, employment and home price appreciation. According to CoreLogic, a mortgage and research analytics firm, home prices for July rose 3.8% above last year and is the largest annual gain in six years. Housing affordability continues to be high as low mortgage rates have continued and housing prices are still below their peak reached several years ago. FreeRateUpdate.com's survey of wholesale and direct lenders shows that mortgage rates stayed firm this past week with 30 year fixed mortgage rates at 3.375%, 15 year fixed mortgage rates at 2.750% and 5/1 adjustable mortgage rates at 2.125%, available with 0.7 to 1% origination fee provided borrowers have good credit. Home purchase loans and traditional mortgage refinances require full documentation for employment, income and credit, all of which will be verified by the lender.