Conflicting Information Keeps Mortgage Rates Low...

Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.16 percent with an average 0.4 point for the week ending March 29, 2007, unchanged from last week when it averaged 6.16 percent. Last year at this time, the 30-year FRM averaged 6.35 percent.

The 15-year FRM this week averaged 5.86 percent with an average 0.4 point, down from last week when it averaged 5.90 percent. A year ago, the 15-year FRM averaged 6.00 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.88 percent this week, with an average 0.5 point, down from last week when it averaged 5.91 percent. A year ago, the 5-year ARM averaged 6.02 percent.

One-year Treasury-indexed ARMs averaged 5.43 percent this week with an average 0.6 point, up from last week when it averaged 5.40 percent. At this time last year, the 1-year ARM averaged 5.51 percent.

"Recent data releases sent conflicting signals about the direction of the housing market," said Frank Nothaft, Freddie Mac vice president and chief economist. "The rise in existing home sales in February to a 6.69 million unit pace, the highest level since last April, offered some hope of firming in housing demand. In contrast, February’s new home sales fell unexpectedly to 848,000 units, the slowest pace since June 2000, suggesting that more time will be needed before a housing recovery takes place."

"Despite concerns about possible spillovers from the troubles in the subprime market, rates on 30-year fixed-rate mortgages remained stable. The ample liquidity provided by Freddie Mac in the conventional conforming mortgage market has helped keep rates down, supporting affordability and aiding in the ultimate recovery of the housing market."

Maricopa County Population Booming...

Maricopa County population booming, from the Arizona Republic, reports that Maricopa County holds the nation's top spot for population growth, adding 696,000 residents between 2000 and 2006, according to the U.S. Census Bureau. Maricopa County is now the fourth largest county in the nation with 3.8 million residents. The increase in population can also be tracked through he number of car registrations originating from other states. The state will soon have seven-digit license plates due to the growth. The rapid growth in Maricopa County can be attributed to rapid economic growth in the Valley, continued immigration from Mexico, domestic immigration from other states, and housing affordability, according to Patricia Gober, a geography professor at ASU. Pinal County was also cited as the sixth fastest growing county in the nation from 2000 to 2006.

http://www.azcentral.com/news/articles/0323census0323.html

3.8 Million Residents...

Maricopa County tops national growth charts, from the Business Journal of Phoenix , also reports on the latest U.S. Census numbers. It states that Maricopa County now has 3.8 million residents, making it the fourth largest county in the nation. It also states that Maricopa County has added nearly 3 million residents since the 1970 census. WOW.

http://phoenix.bizjournals.com/phoenix/stories/2007/03/19/daily36.html?t=printable

78th Street and Camelback Road...

Citro residential projects moving forward, from the Arizona Republic Scottsdale, reports that Urban Home Development Corp. is moving ahead with its plans for Citro Camelback, a 288 unit urban housing development that will go on 12.64-acre at 78th Street and Camelback Road. A second development, Citro Biltmore, will offer 68 units on 4.2 acres at Missouri Ave. and 18th Street. The homes will be urban styled, patterned after row houses, along tree-lined streets. "We've created two authentic urban neighborhoods, designed to be timeless," said Jeff Jones, Urban Home president. Urban Homes hopes to break ground in August on Citro Camelback and complete the first phase of 96 homes in the summer of 2008. Prices for both Citro projects range from $500,000 to $900,000. Urban Homes has opened a sales office, with model rooms, for the combined $220 million projects in the Galleria Corporate Center, 4343 N. Scottsdale Road, suite 115.

http://www.azcentral.com/community/scottsdale/articles/0316sr-biz0316realestateZ8.html

Phoenix Home Prices Drop...

Phoenix home prices drop, but freefall unlikely, from the Arizona Republic, reports that metropolitan Phoenix home prices have dropped in the past year, but economists say not to expect a freefall in Arizona's housing prices. According to the latest issue of the Arizona Blue Chip Economic Forecast, "worries about a bursting housing bubble have not become reality." It cites information from the Office of Federal Housing Enterprise Oversight that shows Arizona home prices were up 10 percent during the fourth quarter of 2006 compared with the fourth quarter of 2005. Helping Arizona home prices are cities like Yuma, Prescott and Flagstaff, which posted double-digit gains in 2006. The Valley's home prices climbed 3 percent during that same period. Nationally, home prices were up 6 percent. Metro Phoenix led the nation for home price gains in 2005 with an almost 50 percent jump, according to the federal housing agency. The Valley median resale home price fell about 5 percent last year.

Scottsdale Experienced Erosion In Prices...

Scottsdale experienced erosion in prices, reports that median home prices fell as much as 4 percent in six of 14 northeast Valley zip codes from August 2006 to January 2007. However, a dwindling supply of buildable land is a stabilizing factor in the Scottsdale real estate market, despite a deep drop in sales last year and some price erosion at the end of 2006. Scottsdale's median price stood at $664,000, up 16 percent from 2005. "The market is giving back some of the gains it achieved" the past two years, said housing analyst RL Brown. Scottsdale and the northeast Valley are still in demand and a limited supply of new homes has helped keep prices relatively stable.

http://www.azcentral.com/class/marketplace/homevaluesspring07/articles/0303vhv-scottsdale0311.html

The Experts' Predictions...

The experts' predictions, looks at several real estate experts take on the housing market, including Vivki Johnson, V.P. at Desert Heritage Mortgage; Chris Mozilo, President of the Arizona Mortgage Lenders Association; Tim Sullivan, President of the Sullivan Group Real Estate Advisors; Drew Brown, President of DMB Associates; Marshall Vest, Director of the Economic and Business Research Center at U of A, Margaret Dixon, President and CEO of Prudential Arizona Properties; and Mark Upton, V.P. with Engle Homes. Most believe that our housing market has hit bottom or will shortly, and that this years housing market will be tough but show some improvement. Most expect a gradual improvement over time. All agree that the local economy is strong and that compared with the national market, we are in good shape due to continued job creation and population gains. It appears the resounding theme from the experts is to have patience. You need to read this article in its entirety.

http://www.azcentral.com/class/marketplace/homevaluesspring07/articles/0306vhv-predictions-ON.html

West Valley Home Values End 2006 On A High Note...

W. Valley home values end year on high note, from the Arizona Republic, reports that last year, most West Valley cities saw gains in median home prices. Litchfield Park had the highest median price in the West Valley at $397,500, while Youngtown ended 2006 with the lowest at $176,000. But even the "far" West Valley saw increases, as evidenced by Tonopah's median home price rising 46 percent, from $157,750 to $231,517. Denise Stern with Century 21 Metro Alliance in Avondale said "prices started out so low, they had no place to go but up. We had people lining up in our office to buy land in Tonopah, and the activity in general drove up the price." Even with the overall increases, the market caught up by August, and according to Information Market Data, more than three-fourths of West Valley zip codes experienced a drop in median price through the last half of 2006. In Glendale, median home prices jumped 12 percent in 2006 to $265,000. Peoria's median price stood at $339,000, Surprise was at $296,480 and Goodyear stood at $331,992.

http://www.azcentral.com/community/glendale/articles/0307onl-values08.html

Housing Market Shows More Of A Pulse...

Valley's housing market shows more of a pulse, from the Arizona Republic, reports that according to some housing experts, the Valley's housing market is showing signs of a rebound. Home building permits across metro Phoenix climbed to a five-month high in January, according to local housing analyst RL Brown. The chart on his Phoenix Housing Market Letter is still "code red", but he is considering changing it to "yellow", signaling caution. Brown still estimates 12,000 to 14,000 spec homes Valley-wide, but builders are dropping prices and drawing buyers back to the fringe areas. There were almost 16,000 new listings for Valley homes in January, down a couple of hundred from December 2006. From national housing analyst Tim Sullivan's newsletter sent out Feb 22: "Many of our home-builder clients in the Southwest report a notable uptick in sales in the last four weeks. None of our clients are going so far to say that the market has been corrected, but the general sense in that the last month or so has been better that in any in the last six to eight months. Now if builders can continue to pay attention to sales prices, the market might find some equilibrium."

http://www.azcentral.com/arizonarepublic/business/articles/0304biz-catherine0304.html

30-Year Mortgage Rates At 6.18%

30-year mortgage rates at 6.18%, lowest level since beginning of the year, from MSNBC.com, reports that rates on 30-year mortgages fell for the second straight week to the lowest level since the week of January 4th. The rate fell to 6.18%, down from 6.22% last week. The drop was spurred by this weeks 416-point drop in the stock market, which pushed investors to seek the safety of bonds. Rates on 15-year fixed-rate mortgages fell to 5.92 percent, down from 5.97 percent last week. One year ARMS were unchanged at 5.49 percent. A year ago, rates on 30-year fixed-rate mortgages stood at 6.24 percent. Great time for buyers to capitalize on these continuing low interest rates!

http://www.msnbc.msn.com/id/7148582/