When asked what I think the market is going to do, I tend to quote a few different analysts. Unfortunately, there is no crystal ball, but we can still look at the indicators to predict what MIGHT happen. I think there was some good news in the statistics released by the Mortgage Bankers Association today. The MBA said its seasonally adjusted index of mortgage application activity, which includes both refinancing and purchasing loans, increased 8.8% to 620.9 the week ended Nov. 3 from the previous week's 570.8. That was driven primarily by a surge in re-fi's. What I see as the good news though is that the MBA's seasonally adjusted purchase index, which is generally considered a timely gauge of U.S. home sales, rose 7.1%. When you combine these indicators with strong economic growth, declining or stable interest rates, it could indicate that the housing market is stabilizing.
These indicators are for the nation as a whole. As we have mentioned before, we are strong on the Phoenix area's possibilities despite the slowdown we have seen. We have so much going for this area that we see the rebound occuring faster in this area than in most other parts of the country.
Adam Tarr, ePro
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source