Finally – Good News From the Mortgage Industry

For those interested in purchasing Tampa real estate, there is finally a small glimmer of good news from the mortgage industry; for the week ending Sept 3, 2008 the Mortgage Bankers Association reported an increase in mortgage applications. After months of consistently bad news, the mortgage industry is feeling a little frayed and frightened; bank closing, bail-outs and rising foreclosures have pre-dominated the media for months on end. However, last months’ Case-Schiller Index noted a slight improvement in home sales among the top metropolitan areas; combined with the seasonally adjusted 7.5 percent increase in mortgage applications some experts are cautiously optimistic.

At a Glance

In addition to the 7.5 percent increase in mortgage applications from one year ago, the MBA data indicates refinance activity was up 2.1 percent while purchase activity was up 10.5 percent… translated into plain language that means the increase in mortgage applications was due to the purchase of property – not merely refinancing bad loans. More details please

What it Means

Many potential Tampa real estate buyers have been sitting on the sidelines waiting for the real estate market to recuperate before buying; although there is plenty of ‘doom and gloom’ in the media, recent research is showing signs of improvements that could potentially signal a “bottoming out” of the current markets.

1. Price increases in 20 markets throughout the nation. The price of housing in 20 major markets across the nation recently went up – despite a decline in the majority of markets.

2. Slowing decrease in most major markets throughout the nation. The rate of price depreciation has slowed or held steady in the majority of housing markets throughout the nation including Tampa.

3. Mortgage applications for the purchase of real estate are up over 10 percent with refinance applications up just over 2 percent. Clearly the trend is toward the purchase of affordable homes and foreclosures – many of which are at historic lows when adjusted for inflation and current interest rates taken into account.

In a Nutshell

People are beginning to buy homes again. Refinancing activity currently accounts for a smaller percentage of mortgage applications while the purchase of new homes, foreclosures, condos and other forms of real estate begins to increase.

Low rates, an upcoming credit crunch and bargain prices on Tampa foreclosures make this the time to buy.

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