The Housing Market

     I’m extracting from a memo from Michelle Morris, CB mortgage broker:

     Mortgage rates were quiet this week, even as the stock market rallied on signs of a strengthening economy in the United States.

     The Dow Jones industrial average reached record highs this week, with the help of recent economic reports that were perceived by investors as positive.

     One report showed the economy added 198,000 jobs in the private sector in February… But … remember that the unemployment rate of 7.9 percent remains elevated and more than 12 million people are unemployed.

     "By looking at the stock market everyone feels like the economy is getting better. But is it really?" asks John Stearns, a mortgage banker at American Fidelity.  He says the housing market is not ready for higher rates yet. "Any uptick in rates is going to slow housing down," he says.

     "Residential real estate markets strengthened in nearly all districts and home prices rose amid falling inventories across much of the country," the Fed's Beige Book says.

     The Fed says the U.S.economy improved in January and February, thanks in part to the recovery in the housing market and strong auto sales.

     "Housing is a big part of the recovery," Stearns says.

     I can definitely feel the difference in the market.  Sellers are now beginning to feel confidence, and buyers have already been feeling confident.  2013 is going to be a very busy year I feel.