Five reason that the real estate market will be upbeat according to Freddie Mac in 2011:
1. Mortgage rates remain extremely low. With Fed observers expecting the central bank to keep the federal funds rate at it’s current range of 0 percent to 0.25 percent for most (if not all) of 2011, low rates will be inviting for buyers. Thirty year fixed rate loans are likely to remain below 5% throughout the year.
2. Housing prices will remain affordable. Many first time home buyers will be enticed by the great prices in 2011. Hopefully, this interest by first time home buyers will result in higher sales than in 2010. Check out the prices of St George Utah real estate.
3. Refinances are predicted to dwindle. Many homeowners who were eligible to refinance their homes have already done so. Even though rates will remain low, they are expected to increase gradually, making it less likely that homeowners will refinance.
4. Delinquency rates will decline. Based on the last several business cyles, the bulk of loans that are 90 or more days delinquent or in the midst of foreclosure usually crests within a year of the start of the recovery in payroll employment. This economic recovery appears to fit within that model.
5. Housing prices have hit bottom. Home prices are likely to begin a gradual but continued recovery in the second half of 2011.