patrick.net

I don't know that I agree with the article above. Some markets have come back VERY strong and buyers are getting new homes. I realize some markets are still struggling and have not come out of the recession. But, that doesn't mean the whole market should be blanketed under doubt of the housing markets return.

Homeownership will only go up when people give up on the concept of pensions and treat their houses as a depreciating asset rather than a stock.

http://www.ourbroker.com/news/mortgage-rates-remain-low-081814/

How Long Can Mortgage Rates Remain So Low?

Mortgage rates have been far lower than expected in 2014, rates which should have resulted in booming home sales and rising real estate values. However that has not been the case. Instead what we have is a weird situation where mortgage rates remain in a trough and potentially might even go lower.

First, the Dodd Frank rules have succeeded in reducing marketplace risk for mortgage investors. Therefore, they want to bring their dollars here from all over the world.

Second, with so many dollars and so little risk in the system it naturally follows that interest rates remain near the historic lows seen in 2012.

Third, it’s actually possible that rates could continue their decline and once again dip below 4 percent. As of mid-August we were not that far off and with real estate sales trailing 2013 and refinancing in the dumper it’s entirely possible that rates might actually go somewhat lower.

At this point the real question regarding mortgage rates is not how long they can stay so low but whether they might actually go lower. It will be interesting to see what happens in September when real estate sales begin to slow after the summer.

No it isn't. NAR says the market is great!

Sorry, I stand corrected. I didn't realize that NAR said that, after all, they are infallible.

For all the claims of economic improvement the reality is that much antipathy remains in the marketplace, a feeling that the recovery is incomplete and has not included everyone, a good reason in some eyes not to make major real estate commitments. A second point is that the Federal Reserve’s impact on mortgage rates is overblown because after tapering and more tapering rates after the initial rush have simply not risen. Indeed, it’s entirely possible after this week’s jobs report that mortgage rates might actually slink below 4 percent.