Bob Travers Knows Fairfield County Real Estate!

   May- Fixed mortgage rates jumped to the highest level this year, threatening to deepen the housing slump. An improving economic outlook spurred an increase in rates even as a rising jobless rate is contributing to record home foreclosures.
     Foreclosure-driven declines in values and tax incentives have helped put more homes within reach of 1st-time buyers, helping to stabilize the market. The market is bottoming in some areas of the country while in other areas values continue to languish or decline.
     Sales of previously owned homes had unexpectedly increased as record foreclosures pushed down prices and lured first time buyers into the marketplace. First time buyers are accounting for many of the sales, led by the demand for lower priced homes. "Green shoots" are beginning to sprout in local markets, most notably in the lower price ranges. Increased web and viewer traffic is being reported around the County.
     According to a report from Moody's Economy.com, US housing markets from Florida to California have suffered price drops of 50% or more from the peak but a market bottom seems to be within sight, likely in the fourth quarter nationally. More than three years since the market began correcting, inventories are flattening, prices are coming back down to earth and sales are approaching stability. The outlook does assume stronger action by the U.S. policymakers which is anticipated to be in the works.