"Piggyback" Loans have increased 20% since 2001

Second mortgages, also known as lender seconds, have made the West coast prices more affordable by allowing a buyer to put down a lower down payment. Another advantage is that the interest on a second mortgage, like the first, is tax deductible. Not so with PMI when the down is less than 20%. 42 percent of loans involved seconds in early 2004. PMI carriers are critical of these loans, not surprisingly, however the cost to the consumer is ultimately more using PMI. Click here for C.A.R's article.

30-year fixed rate mortgage still down

As of June 23, the 30-year rate was down again from last week when it averaged 5.63 percent, to 5.57 percent. At this time last year it averaged 6.25 percent. Existing homes sales, nationwide, in May were at the second highest lever ever recorded, fueled by low mortgage rates, and this pattern may well continue into the foreseeable future, according to Freddie Mac's vice president Frank Nothaft.

The Upside of Higher Prices

California property taxes are based on the current home selling price, starting at approximately 1.25 percent. The counties's collections have profited from the increase in prices, the low interest rates, and the current turnover rate. Property tax collections are up 9 percent in Los Angeles County, meaning an extra $223 million in revenue which will be used for more sheriff's deputies and hopital system improvements. Property taxes account for 70 percent of LA County's revenue. In a market downturn, property owners can request reassessment of their properties at the current market value--many owners did this in the 1990's recession to reduce their tax payments.

Foreclosures Not Any Time Soon

With all the talk about the real estate bubble, especially in certain markets, questions of foreclosures come up too. According to the Mortgage Bankers Association, the delinquency rate for loans was lower than the first quarter and fourth quarters of 2004. The U.S. economy grew at almost 3.5 percent in "annualized real terms" during 2005, adding 180,000 payroll jobs per month, according to the MBA. Also, the precentage of loans "seriously" delinquent, those past 90 or more days or in foreclosure, was 1.89 percent, which was 18 basis points lower than the 4th quarter of 2004 and even lower than the first quarter of 2004. See MBA's article.

Has L.A.'s housing profile changed in 20 years?

Economy.com has supposedly looked at what people could afford in major metropolitan areas starting in 1980. This very interesting graph shows Los Angeles, New York, and San Francisco in that time have occupied the lower line of housing affordability when compared to income. The recession years gave a boost to L.A.'s affordability, but starting in 2000, it returned to almost the same level by 2004.

California Median Price at $509,230 in April

Minimum household income need to purchase was $120,290, according to C.A.R., in California. Nationwide the minimum household income needed to purchase was $48,660 for the median priced home of $206,000. California's housing affordability stands at 17% of the buyers being able to buy a home; it has declined 3 points since April of 2004. The California index is a housing measure based on statewide data, and varies from county to county. The Los Angeles County median, according to DataQuick, was $445,000 during April, a new record. Southland buyers' typical monthly mortgage for April purchases was $2019, up from $1,760 for April, 2004.

Some Seller Tax Breaks

In 1997 sellers got a really big break on capital gains: "the home-sale tax burden eased for millions of residential taxpayers. The rollover or once-in-a-lifetime options were replaced with the current per-sale exclusion amounts." Some people still are not aware of this, however, but remember, if you're single, the capital gains exclusion is $250,000; for married couples, the exclusion is $500,000. This capital gains exclusion applies to principal residences only. And, there is no longer, since 1997, a requirement to buy another property within a certain period of time. Bankrate.com's Capital gains and your home sale explains more, the important thing to remember is always check with your accountant or tax advisor for complete advice!

Prices Coming Down?

One approach some people are thinking of now is sell and then rent for a while so that all their gain can be invested in a cheaper home when the prices come down. But as this says, that may be nothing more than speculation, especially when you're dealing with your primary residence. If you have an investment property, a rental, a second home, that strategy may work, especially if you're considering a 1031 exchange. It's not recommended for your principal residence if you're planning on staying in the same area.

Why are long-term interest rates declining?

The 30-year fixed is at 5.09%, and what does this mean for now? It means a reduction in your monthly mortgage payment, and this is a great time to take advantage of that. Click here for Bankrate.com's analysis, but see me, your Realtor, for how to take advantage of this great opportunity. At a time when adjustable rate mortgages make up 63% of new loans, take advantage of getting a fixed rate loan at the lowest rates ever.

National Association of Realtors is concerned about the Realtors' right to do business in these bills and rightly so. Allowing banks to conduct real estate brokerage business, under their guise of offering financial services, is an attempt to reduce or eliminate the consumers present choice in how they purchase and whom they use in purchasing their homes. The business of banking is nothing but a growing exercise in consolidation, and the "fairness" and "competition" in these bills will not be for the consumer or for the real estate professional, or the local financial professional, but for the large bank(s) only:

"Bill to Allow Banks in Real Estate IntroducedFinancial Services Chairman Mike Oxley (R-OH) and Ranking Member Barney Frank (D-MA) introduced H.R. 2660, the "Fair Choice and Competition in Real Estate Act" on May 27th, 2005. This bill would allow huge megabanks to operate real estate brokerage, leasing and management firms. There are no additional cosponsors on H.R. 2660.Meanwhile, H.R. 111, the "Community Choice in Real Estate Act" has gained a majority of cosponsors in the House. With 221 cosponsors, the bill has more than enough votes to pass if Chairman Oxley brings the bill to the floor. NAR will again ask for hearings on both bills, and to testify at any hearing that is held."

40-year mortgages go mainstream

As this article says so well, these mortgages were not a player in the market because investors would not buy them. FNMA is now buying 40-year mortgages. But "It's not a sure bet that 40-year loans will catch on for at least three reasons. First, the interest rates are slightly higher -- usually an eighth to a quarter of a percentage point. Second, tacking 10 years onto the payment schedule doesn't save all that much money every month. Third, interest-only mortgages have exploded in popularity in the last two years, and they offer even lower initial monthly payments than 40-year loans." With rising prices, however, it gives the consumer another choice. See this article 40-year mortgages join the mix.

High Prices Aren't Just in Southern California

How about a bidding war where the highest bid is 1 million pounds over the asking price? Other parts of the world are also experiencing a real estate increase, to say nothing of Scotland. In 2000, 10 homes in Scotland sold for more than a million pounds (about $1.8 million in today's currency), but last year 57 sold in the range, according to the Bank of Scotland. See BBC NEWS Scotland Million-pound house sales soaring.

$500,000 California Median Price

April prices increased 12.5 percent and sales increased 2.7 percent compared with April of 2004. Closed escrow sales in California of single family detached homes totaled over 658,000 (but did you know there are approximately 438,000 real estate licensees in this state?). The median price was actually $509,230 for April, 2005. Read CAR's article:April 05 sales/price report.

National Median Home Prices

Here is USA TODAY'S home price report for the first quarter this year. The highest median home price is in the West, but the greatest increase by percentage was in the Northeast. See this for more.

Property Flippers Beware

US Bank Home Mortgage is now carrying on with what HUD started in 2003--namely, no loan funding for properties where the seller in a conventional home purchase has held title for less than 90 days. And Freddie Mac last October started property valuation warnings on potentially fraudulent loans. Property flipping is considered growing threat and could lead to financial losses--US Bank says it is "a threat to the integrity of the residential real estate industry", in a memo this week, according to Inman News. These transactions can involve false appraisals, which can lead to a false inflation of selling prices. If you are considering a purchase or sale in the near future, take these remarks into consideration, or ask your Realtor to give you assistance with a little research and advice.

Interest Rates Held Low

Investors' waning fears about inflation helped drive down rates on 30- and 15-year mortgages this week to their lowest numbers since late February, according to market observers. Interest on 30-year, fixed loans averaged 5.71 percent this week, down from 5.77 percent a week ago; and 15-year, fixed mortgages averaged 5.27 percent this week, compared to 5.33 percent last week, according to the weekly survey from Freddie Mac. "As long as inflation is held in check there is little or no pressure to push mortgage rates higher," said Freddie Mac chief economist Frank Nothaft. Fuel prices are high, he added, but "core" inflation remains under control. Source, Chicago Tribune.

40-Year Mortgages Stretch Payments

While they've been around for a while, 40-year mortgages have only recently been seriously expanded by FNMA. Higher and higher home prices call for more products to home ownership more affordable. It will probably have the most appeal for buyers who plan on staying in their home beyond the 5-7 year mark, and don't want to run the risk of refinancing at that time. See this for more.

One Stop Shopping

This is increasingly popular: You find a Realtor and then use their lender, or their escrow, or their title affiliation, all in one place. It saves time and decision-making, but is there more to it? In the wake of probes of questionable practices by certain title companies, Colorado initiated a bill, now withdrawn. Under a federal Act known as RESPA (Real Estate Settlement Procedures Act) which binds agents and others in the real estate industry to specific guidelines, these company affiliations are legal. But some have not followed those guidelines. What many consumers don't know is that using the real estate broker's escrow company means you aren't necessarily using an independantly licensed company, but one that may be operating under that real estate broker's license. Escrow companies are required to be a neutral 3rd party in a transaction, but are they if they are not independantly licensed? There are conveniences to one-stop shopping, but the consumer should also know more. Read here for more.

Demand for California Housing

Where will the tradeoff be between interest rate increases and continued demand for housing? Housing production may exceed 200,000 new homes and apartments for the second year in a row, and builders still may not be meeting the needs of a growing population. Last year alone 210,000 new units were built, the highest number since 1989. Historic lows in rates continues which compensates for the current market prices. So where will it level off? Rising interest rates will eventually impact selling prices, but a growing population will still fuel housing demand, while a continued positive employment outlook will sustain the current level of housing prices. See this article.

When Rates Fall- or Go Up

Rates on 30-year fixed rate mortgages have fallen for three straight weeks to 5.8 or less. Although there have been frequent predictions for months, and even years, that rates will once again rise to 7 percent within a year, these predictions are also tempered with recognition about other factors. Such as, dollars earned in foreign trade would stop flowing into U.S. Treasury securities, one cause of lower U.S. interest rates, or the Federal Reserve may adopt more aggressive credit tightening to fight inflation. But, as long as rates stay low, home sales march on at a pace beyond this year's expectations. Read here for more.

Are Lenders and Buyers Too Close to the Edge?

Today's loans were not available 15 years ago, and most were not available 5 years ago. The shift in the market has underlined the necessity of getting first-time buyers a way into homeownership. In the 1990's, a zero-down loan was very expensive and very difficult to qualify for and the few sources available were very restrictive. Now, it's a different story because lenders qualify a buyer on their FICO score, a kind of universal credit risk number which they feel is a very reliable indicator of risk. But are lenders taking too much risk? Trillions of dollars are riding on a single number, and while there is still an active, very active, real estate market, a more conservative spending profile, especially for younger adults, would only be a good thing. There will be a greater return on a real estate investment than there will be on a new SUV. Read Are lenders getting too lenient? - Apr. 22, 2005.

Dataquick's March Summary

It's the usual story: record sales in Southern California, but surprisingly, when adjusted for inflation, homeowner payments at $1983/month were still 8% lower than in 1989. Foreclosures in California are low, the single family median price for Southern California was $439,000. So far, the real estate bubble and subsequent crash isn't on the horizon--in fact, NAR president David Lereah believes the real estate market overall for the next 5 years will remain strong. Read DQNews - Southern California Press Release for more.

Prices Still Offering Above Average Returns

The national median price of existing homes is expected to grow 6.3 percent this year, according to the National Association of Realtors. The sale of existing homes will slow by 2.4 percent, second to last year's record 6.78 million sales. The supply of homes remains tight, and that imbalance puts pressure on home prices still. The CPI may rise 3 percent this year, more than its normal rate of inflation, but home prices are still expected to experience above average returns in 2005. As for some time now, interest rates are again projected to rise to 6.8 percent by the end of the year. So what does a .8 percent increase mean to your monthly payment? It could mean $141 more in principal and interest for the same $300,000 property with the same loan amount. Click here for more.

Average new-home prices rise 39% in California

Population increase and land supply are two of the strongest reasons for home price increases.

Meritage Homes Corp. today announced a new records for its new orders and closings. CEO John R. Landon reports strong demand for Meritage's homes in the several states in which it builds. Compared to Arizona and Nevada, California has risen higher. 'Rising population and housing demand, combined with a restricted land supply, are pushing prices higher in the California market. In our California division, the average price of homes ordered during the first quarter 2005 increased 39 percent over the first quarter a year ago. We attribute this increase to several premium-priced communities in California that were either not open for sales a year ago or which had significant increases in sales rates over last year and to generally increasing pricing levels.'

Tax Advantages for Homeowners vs. Renters

California Association of Realtors Briefing Paper reminds us of the advantages of owning. Buyers may fear they are buying at the wrong time -- a constantly recurring fear no matter what the market is -- so it is important to keep things in perspective. Mortgage interest and property tax deductions reduce your tax amount by thousands -- a benefit not received by most renters. A homeowner gains market equity over time, or equity through reduction of the loan principal. With the median price home in California at $471,000, and a 20 percent down payment, an owners may have up to $32,000 in deductions which would translate into about $8,000 of tax savings assuming a 25 percent tax bracket. See the Tax value of homeownership and the link to the entire briefing paper.

2005 Buyer Survey on Internet Use

It's no surprise that Buyers use the Internet to acquaint themselves with the homebuying process. The percentage increases every year: according to this survey it's up to 62 percent. Buyers do count on their REALTORS to provide interpretation, judgment and expertise about the market. Six out of 10 Internet buyers said information gathered from the Internet was less useful than that provided by their REALTORS. In my own personal experience I currently receive inquiries from prospective buyers who less current about market prices compared to inquiries of about 5 years ago. More information on the Internet does not add up to more informed buyers--just the opposite may be true as there is more information to decipher and more time required to find it. Read about the 2005 "Internet Versus Traditional Buyer Survey" for additional interesting facts about buyers.

Interest Rates Continue Upward

Rates continue upward, but rates also vary by region. However, in the words of Freddie Mac vice president: "Although mortgage rates have risen these past six weeks, they still remain at very affordable levels." That means they still compare to rates of several decades ago. Also, if you're applying for a loan, your FICO score and other personal financial factors may get you a lower rate, or a higher one. Read this article for more.

Who Is Affected By Yesterday's Rate Hike?

If you have a home equity line of credit (that's a lot of us) or an adjustable rate loan, you will feel the pinch soon. Fixed rate loan interest rates are usually anticipated well in advance of rate hikes, and those have already seen the change for now. Also credit card borrowers will likely seen a rate increase, but so will CD investors. Read Bankrate.com's Rate-hike winners and losers for more.

Mortgage Rates Rise to 6%

As rates rise, borrowers increasingly use ARMs (adjustable rate mortgages) with the lower rates for a fixed period of time or those with extremely low start rates. Those ARMs help get the buyer into an much more expensive home--it's a chicken vs. the egg story with high home prices on the one hand, and lower rates on the other hand that helped keep those home prices high. On the one hand, rates have maintained 40-year low, on the other hand, homes haven't ever been this expensive. Does this mean there's a bubble? As long as we have jobs, retail sales, housing starts and continued employment, the picture for higher prices with real estate is likely to remain. Mortgage rates, CD rates, auto loans, credit cards, mortgages, personal finance advice and more

Long Beach's Historic Districts Anchor Stability

Growth in this area has coincided with preservation. While occasionally preservation has caused controversy among neighbors, it has also brought identity which has brought appreciation and real estate value. Cultural recognition of Long Beach's areas has risen, especially in the last 10 years. This Press-Telegram article covers the how's, why's and players in Long Beach historic preservation, one of the great attractions for living in this city for a lot of people.

Real Estate Fuels Net Worth

The Federal Reserve reported on Thursday that household net worth jumped $2 trillion in the fourth quarter, to $59.2 trillion. Higher values in real estate, stocks and mutual funds fueled the last quarter rise in net worth. American homes were worth a net $8.7 trillion, up 13 percent from a year ago. Click here for the C.A.R article.

Local Long Beach

If you're looking for an overview about the area and some information phone numbers, shopping centers, points of interest, and that sort of thing, look at "Facts At a Glance", published by the City of Long Beach on their website.

What About the CLUE report?

This article is another reminder to be careful about claims on your homeowner insurance. All buyers and sellers should be aware that a previous owner's, not just the current owner's, claims may affect the current buyer's ability to get certain insurance coverage on their new home purchase. The Comprehensive Loss Underwriting Exchange is the insurance industry's database about claims history, especially related to water and mold problems. This article should emphasize the point of vigilance about home maintenance issues to prevent the unexpected as much as possible.

Calif. Median Home Price Up 2% in January

The market has not declined, the price continues upward for now, and inventory increased in January, but is still low by historic standards. Buyers have a little more breathing time to make an offer, sellers are still rewarded with a strong market statewide. What fuels this increase? Total sales for 2005 may be lower than 2004, but in California demand outweighs supply. There may be several reasons for this demand, chief among them is increased population. Read C.A.R.'s report for more.

First Time Buyer Alert!

California first time homebuyers in particular already know the challenge of entering this market where first time homebuyers are only about 26% of all homebuyers, a record low. Assembly Bill 62 has just been introduced by Audra Strickland which proposes and assessment reduction equal to 25 per cent of the property's value. Property taxes are assessed at 1% plus .25% for state bonds, and this proposal would take about $1,200 off your property taxes, considering the median price of a home here is $473,000. This is a bill to follow, and read this for more.

Prices Still Going Up

This time last year, a lot of economists thought the market had reached its peak; a lot of people thought that about 3-4 years ago too. But a National Association of Realtors economist, Lawrence Yun, says he expects a continued rise, but of about 5% in the next year due to anticipated rises in interest rates. He doesn't expect prices to fall because job creation is expected to rise, baby boomers are buying bigger homes, not smaller ones, and the home inventory available for purchase is at an historic low, expecially in California. Read here for more.

Fed Chief Sees Localized Bubbles

Attributing homeowner wealth largely to the upward run in home equity, Alan Greenspan admits to problems in some geographic areas, but not nationally. "Remember that there's a very significant buffer in home equities at this stage," he said, referring to the $9 trillion difference between home values and outstanding mortgage debt.Fed chief sees home price bubble - The Washington Times: Business - February 18, 2005

Excessive Regulations Driving up the cost of Housing?

The U.S. Dept. of Housing and Urban Development (HUD) has taken a look at housing costs, and released a report on excessive regulations which restrict available land for development which might otherwise be used. Impact fees, environmental regulations and "smart growth" may be misused to justify limiting affordable housing production. Obsolete building codes limit more cost-effective building materials, and HUD is now requiring a review on all proposed regulations to determine their impact on affordable housing before taking effect. See this article about HUD, and then go to here to read the Wall Street Journal's article on the median price for a condo exceeding the median price of a single-family home for the first time. Condos have begun to fuel their own market as they increase in number in more expensive and up-scale urban areas. In the meantime, the FDIC attempts to review housing booms, which may or may not be followed by a bust. U.S. Home Prices: Does Bust Always Follow Boom? reports that the recent growth in home prices surpasses any of the last 25 years. A boom is an increase of 30% in three years, and a bust is a 15% decrease in 5 years, according to the FDIC, driven down by economic shocks. The change in today's credit market is uncharted territory and differs from past history--an additional factor which challenges the crystal ball readers who attempt to predict the conclusion of this current economic cycle.

Should I Buy Now or Wait?

This article says: "Numerous factors determine whether prices are in line with what people can afford and are willing to pay. These include job and household growth, inventory levels, rents, in-migration from other areas, land costs, new-home supply and discounts being offered on them, and the age of the housing stock." These factors may change suddenly, i.e., the Enron scandal, or not. Also, psychological factors about where you want to live and why weigh in strongly.

So if you plan to live in an area for two-plus years, and you can afford that area, you're better off buying, especially with present interest rates. Even though many people were hurt in the 1990's recession, those who could stay put for 7-8 years were able to ride it out. Not even the best predictors know when the market will actually turn--we've been hearing that interest rates will rise for a long time now, but they've held to the same levels. Read here for this Wall Street Journal article.

2005 Market Expected to be Second Highest on Record

Existing home sales, nationally, may decline about 2 percent from last year's record, with the economic conditions this year expected to be similar to 2004, according to the National Association of Realtors. Prices may climb upward, but at a slower rate, with interest rates, income and prices considered to remain favorable. California's current median price of about $479,000 is expected to rise over $500,000, according to the California Association of Realtors. Click here for more information. NAR is expected to post benchmark revisions based on updated census data and approval by the Federal Reserve Board on February 25.

What Does Your Credit Score Reveal?

Should your credit score (that FICO number) be used to determine the amount of your insurance premium? Most consumers would be against that, but a study in Texas claims there's a link between credit scores and filing insurance claims. Read here to see the article.

So What Really IS the BIGGEST Homebuying Mistake?

Read this and you'll find out ... It's not just one thing as this author says, because it depends on who you talk to in the real estate industry. There are so many factors in a successful home purchase, and unsuccessful ones, that it's hard to know them all at one given time. But one thing a buyer can do is, like the Cub Scout motto, "be prepared." Take the time to do research, don't fall in love with a house so much that you forget your budget. Doing the research does mean doing some of all the things mentioned in each of the categories in this article, and then find someone you trust to work with, the next most important thing. Read here about Avoiding the Biggest Homebuying Mistake

Fed Hikes the Rates Again by .25

So the Federal Reserve has raised the short-term interest rate again, but why did long-term interest rates actually go down since last June? According to this article, Fed hikes rates again, long term rates reflect worry about inflation, and apparently investors in many market sectors are not worried significantly about inflation, i.e., yields on Treasury notes. The Fed threatens to raise rates and "measured" intervals, however, rates for mortgages, auto loans, longer-term home equity loans don't respond directly to those increases. Read the article for more information.

Mortgages: What the lenders look for

Here are the 14 factors, according to Bankrate.com, that the Desktop Underwriter, a Fannie Mae program, that are looked at in judging the borrower's loan qualification. Equity, credit history, your reserves, your debt-to-income ratio, down payment source, or whether you're buying a condo or a house: These are several of the factors. Remember, this is for an automated underwriting approach, it doesn't mean that there aren't other approaches to loan qualification, but the automated approach is one lenders like to use if you qualify because of the ease of finding you the actual loan source on which to close escrow. Click here for the full article.

Homeownership and Consumer Knowledge

How do consumers keep abreast of what is offered to them with the vast array of types of loans and loan sources? That is a question the federal agencies have grappled with for some time, as the model for loan underwriting has changed in the loan industry to one of automated underwriting driven largely by FICO scores of the consumers. The stretching of underwriting criteria by Fannie Mae and Freddie Mac led to an explosion of providers, funders and approaches in the early 1990's. The huge diversity of loan programs and providers cut into the homeownership education counseling programs.

"--the homeownership counseling industry is at a crossroads. The mortgage market has radically changed and originations are dominated by risk-based pricing driven by automated underwriting. Servicing also is increasingly driven by technology. And while predatory lending practices have consumed an enormous amount of attention and effort, the legitimate subprime market is maturing and offering fair options to many borrowers previously shut out of the prime market. Consumers are presented with a dazzling array of product options, and the rise of the Internet has brought the application process into the digital age. In this context, we explore what insights modern research literature has to offer about homeownership counseling." If you want to view the entire Harvard University study, take a look here. (© 2004 President and Fellows of Harvard College.)

Long Beach in 2004

How much did appreciation did we get in 2004? According to DataQuick, which tracks real estate data, the number of single family residences and condos sold in LONG BEACH in 2004 was 5,286 at a median price of $370,000--compare that to $285,000 in 2003, an increase in appreciation of 29.82%.

For the entire state, California Association of Realtors reported on January 25, 2004, that the median price of an existing, single-family detached home in California during December 2004 was $474,480, an 18.1 percent increase over the revised $401,720 median for December 2003. The December 2004 median price increased 0.5 percent compared with a revised $471,980 median price in November.

Interest Rates Lower--Still Under 6%

According to Bankrate.Com, rates in Boston, Houston, Los Angeles and San Francisco and Dallas are all similar (depending on the points paid), around 5.7 to 5.8 percent. Rates have dropped for the third consecutive week, so we're not seeing that upward climb yet, as rates generally continue at a 40-year low. Read more.

Home Builders Expect Strong Housing Market

Positive trends in the national economy are expected to buoy the demand for housing this year, according to a builders survey done in the last two weeks. They are most confident in the West, even though interest rates and high housing prices may offset affordability after a record year in 2004 for sales and single-family start ups. Click here for more.

Remodel Projects a New Force

Households with incomes of $120,000 and up are part of the home improvement market which has grown significantly since 1995. Major kitchen and bath remodels and room additions are the most popular types of projects, with costs of $25,000 accounting for over a third of the remodeling expenditures. A more diverse population of younger homeowners are increasing the demand for remodels, and rival the baby boomer in per-household spending.

Interest Rates Still Down at Second Lowest Average in 32 Years

According to the American Land Title Association, "mortgage rates in 2004 averaged around 5.84 percent, the second lowest annual rate ever recorded in the history of Freddie Mac’s Primary Mortgage Market Survey", according to Amy Cutts, their deputy chief economist. Mortgage rates are expected to rise in 2005, but not enough to slow the housing industry, although sales may drop off slightly from this 2004's pace.

There have been several projections about 2005 will bring, and there is definitely an increase in adjustable rate mortgages, but fixed rates continue under 6%. The national 30-year rate is just a shade lower than this time last year. This economist's projection is that the housing industry will continue to be healthy into the foreseeable future. Read ALTA - Industry News for more.