The year ended as it has been all along…a mixed back of up and down with a steady trend toward a slowly improving economy. The Case-Schiller index showed that prices in the 20 major cities it tracks have fallen 1.3% month to month in October and .8% year to year. So, it’s a pull back, but before you start talking about a ‘double-dip’ in the housing market, remember that house prices are based on job growth and this week we saw jobless claims fall to their lowest levels since July of 2008. This push-pull between an improving economy and the overhang of foreclosures will continue into 2011 but look to see the house price trend reverse itself and become positive again in the spring.
So, what is ahead for 2011? A slow but steady digging out from our economic downturn; Housing prices stabilizing and slowly increasing in value in all but the most hard hit job markets; And rates ticking up slightly as the year progresses ending up in the high 5% – low 6% range. So housing affordability, while not as good as 2010, will still be excellent. Combine that with a steadily improving consumer mindset and 2011 should be a pretty good year.
The Oklahoma State Bond Money with a rate of 4.75% and 3.5% Down Payment Assistance is still available with about $11,500,000.
Happy New Year to all. May your year bring you prosperity and happiness.
This week 30 yr. fixed rates ranged between 4.75% & 4.875% depending on program, credit and points.
Sr. Loan Officer
NMLSR # 217991
OK License # MLO01963