Jakes Realestate Blog

30-Year mortgages posted a decline this past week as signals from the Federal Reserve eased worries about imminent rate increases. Freddie Mac, reported Thursday July 3rd, that 40-year fixed-rate mortgages averaged 6.35 percent, down from 6.45 percent the last week in June, which had been the highest level since last September. The decline pushed the rate to its lowest level in three weeks but it remained above 6 percent, where it has been since the last week in May. Rates on 15-year fixed-rate mortgages dropped to 5.92 percent, down from 6.04 percent the last week in June. Full Story: Star Tribune (may require free registration)

Existing-home sales increased in May with buyers responding to lower home prices, according to the National Association of Realtors. Existing-home sales, including single-family, townhomes, condos and co-ops, increased 2.0 percent. NAR President Richard F. Gaylord of Long Beach, CA said buyers are seeing value in the current market. "Homebuyers are starting to get off the fence and into the market, drawn by drops in prices in many areas and armed with greater access to affordable mortgages." "Today's buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth." NAR chief economist Lawrence Yun, "The large supply of homes on the market clearly favors buyers and it should take several months to draw the inventory down," "Stabilization in prices can only occur with buyers returning to the market, so we are encouraged by rising sales, particularly in distressed markets." Although conditions remain mixed around the country, unpublished data shows a number of areas are experiencing much higher sales activity than May a year ago, including Sacramento, San Fernando Valley and Monterey County CA, Sarasota Florida and Battle Creek Michigan. Full Story: National Association Of Realtors

With $4-a-gallon gas prices, real estate agents see potential buyers thinking about their commute. When Mindy Myhre moved back to the Twin cities from Denver, she thought about a house in the suburbs with a big yard and attached garage. All that changed when she started thinking about time on the road and the cost of filling her gas tank! It's an issue that a growing number of buyers and sellers are paying attention to as they consider where to live. Agents say that bodes well for city neighborhoods and communities that have easy access to public transportation, bike lanes and other commuter-friendly amenities. Full Story: Star Tribune (may require free registration)