MMC Market Update (Good News! Bad News?)

As you might have noticed, we have been talking less and less about mortgage interest rates in our updates.  That is because they just stay so very, very low that it gets boring to say that “rates are at historic lows.”  That is true, but it is boring.  Therefore, we want to highlight some articles today about housing.

US Builders Start More Single-Family Homes:  Although the numbers contained in this report are not mind-blowing, statements like “U.S. builders started work on more single-family homes in May and requested the most permits to build homes and apartments in three and a half years” reinforce our belief that we have seen the bottom.

Housing Index Shows Small Improvement:  As with the first article, the numbers are still below healthy, but these readings are at their highest level since May of 2007.

Foreclosures Rise in St. Louis:  This article is not full of good news, but we do want to continue to point out that foreclosures will not rise drastically in the short-term or the long-term.  We can speak from experience that individuals that get loans today deserve to get loans.  We all know that this was not true prior to 2008.  This is important because, in our opinion, the increased requirements that buyers face, although frustrating at times, will keep foreclosures down in the future.

We will check back in with you later in the week to discuss what came out of tomorrow’s Fed meeting.  Have a great day!