Despite indications that the housing market is improving, the housing market faces challenging times ahead. The recent Urban Land Institute forecast didn’t indicate the significant bounce back depressed homeowners were hoping to see.
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The new demand which would normally ignite an up cycle at the end of a market downturn simply isn’t there. Neither is easy access to credit. So the housing market’s recent signs of price improvement as reported by the Standard and Poor’s/Case-Shiller index may be thwarted.
This is good for buyers with cash because the disappointment in the rate of price improvement is causing mortgage rates
to decline once again. For conventional loans, the latest weekly mortgage rates came in at 3.99%. That’s below the 4.08% rate from the previous week and down from the 4.86% rate a year ago. Adjustable rate mortgage rates were 2.9% versus the previous week’s 2.96% rate and the year-ago rate of 3.26%.