With home prices continuing to deliver double-digit increases, some are concerned we’re in a housing bubble like the one in 2006 Mike Eastwood Author-Chief Executive Officer of Bello Sol Inc/West USA Realty of Prescott states. However, a closer look at the market data indicates this is nothing like 2006 for three major reasons. 1. The housing market isn’t driven by risky mortgage loans. Back in 2006, nearly everyone could qualify for a loan. The  Mortgage Credit Availability Index  (MCAI) from the  Mortgage Bankers’ Association  is an indicator of the availability of mortgage money. The higher the index, the easier it is to obtain a mortgage. The MCAI more than doubled from 2004 (378) to 2006 (869). Today, the index stands at 130. As an example of the difference between today and 2006, let’s look at the  volume of mortgages  that originated when a buyer had less than a 620 credit score. Dr. Frank Nothaft, Chief Economist for  CoreLogic , reitera...

  In today’s real estate market, mortgage interest rates are near record lows states Mike Eastwood Author-Chief Executive Officer of Bello Sol Inc/ West USA Realty of Prescott. If you’ve been in your current home for several years and haven’t refinanced lately,   there’s a good chance you have a mortgage with an interest rate higher than today’s average.  Here are some options you should consider if you want to take advantage of today’s current low rates before they rise. Sell and Move Up (or Downsize) Many of today’s homeowners are rethinking what they need in a home and redefining what their  dream home  means. For some, continued remote work is bringing about the need for additional space. For others, moving to a lower cost-of-living area or downsizing may be great options. If you’re considering either of these, there may not be a better time to move. Here’s why. The chart below shows average  mortgage rates  by decade compared to where they are tod...

 Mike Eastwood Author-Chief Executive Officer of Bello Sol Inc/West USA Realty of Prescott states.  Last week,   Fannie Mae   released their   Home Purchase Sentiment Index   (HPSI). Though the survey showed 77% of respondents believe it’s a “good time to sell,” it also confirms what many are sensing: an increasing number of Americans believe it’s a “bad time to buy” a home. The percentage of those surveyed saying it’s a “bad time to buy” hit 64%, up from 56% last month and 38% last July. The latest HPSI explains: “Consumers also continued to cite high home prices as the predominant reason for their ongoing and significant divergence in sentiment toward homebuying and home-selling conditions.   While all surveyed segments have expressed greater negativity toward homebuying over the last few months, renters who say they are planning to buy a home in the next few years have demonstrated an even steeper decline in homebuying sentiment than homeowners. It’...

  An important factor in today’s market is the number of homes for sale states Mike Eastwood Author-Chief Executive Officer of Bello Sol Inc/West USA Realty of Prescott. While inventory levels continue to sit near historic lows, there are indications  we may have hit the lowest point we’ll see . Odeta Kushi, Deputy Chief Economist at   First American,   recently   said   of our supply challenges: “ It looks like inventory may have hit a bottom  (we’ve seen this in the higher frequency data as well). Unsold inventory in May was at 2.5 months supply, up from 2.4. ” To put it into perspective, the graph below shows levels of inventory  rising  since the beginning of the year: We’re still not close to a  balanced market , which would be a 6 months’ supply of homes for sale. However, we are seeing a  slow but steady increase in homes coming up for sale.  And that leaves many buyers and sellers wondering the same thing: what does tha...