Update from Prime Lending

QUOTE OF THE WEEK…”If you only care enough for a result, you will almost certainly attain it.”–William James

INFO THAT HITS US WHERE WE LIVE…One result we care a lot about is a turnaround for new homes. We haven’t attained it quite yet, with New Home Sales down 2.3% in August, at a 295,000 annual rate. This keeps them in the territory they’ve occupied since May 2010, but there were some good signs in the report. The inventory of new homes for sale fell to its lowest level on record. At the same time, the inventory of homes not yet started went up the most it has in nearly five years. Some economists say this may indicate home building is close to turning back up.

The FHFA index of prices for homes bought with conforming mortgages went UP 0.8% in July after a 0.7% hike in June. This key home price index is up 7.4% annually over the last three months, the fastest rate of increase since early 2006. Standard & Poor’s Case-Shiller Home Price Index was UP 0.9% in July for the fourth month in a row, although prices are still down versus last year. Finally, Pending Home Sales, measuring contracts on existing homes, were off 1.2% in August, dragged down by the hurricane and floods in the Northeast, but they’re UP 7.7% year-over-year!

Courtesy of George Hagar at Prime Lending
George Hager
Mortgage Loan Officer
4 Venture #100
Irvine, CA 92618
714.309.5665 | P
877.895.1813 | F