As we begin to think about the all important spring buying and selling season here in the Triangle, home prices top the list of important criteria for buyers and sellers. As inventory levels are decreasing, the natural pressure from fewer homes available on the market will help to push Triangle home prices higher as we head further into 2013.
This trend was solidified today with the most recent report out from the Federal Housing Finance Agency’s Home Price Index. The report indicated that home prices rose 5.6% in the first eleven months of 2012. Existing home inventories have now fallen to their lowest level since January 2001. This decline in inventory will provide some much needed purchase momentum for the spring.
Mortgage Applications were up 7% for the week ending January 18th. Refinances led the way with a 7.7% increase and purchases were up 2.5%.
Mortgage rates have been trading in a narrow range over the past couple of trading sessions. Europe, US Debt and domestic economic factors continue to be the main drivers of day-to-day mortgage rate movement.