According to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, rising mortgage rates helped push first-time homebuyers to buy properties in November, surging from 34.4% in October to 37.2% last month.
Investors lost some of their enthusiasm for distressed properties last month, falling from 21.4% for home purchase transactions in October to 19.9% in November. During September, investor participation peaked at 22.3%, a 15-month high, according to the closely watched survey. The large inventory of distressed properties is making investors nervous that prices will decline in 2011, Popik reported, adding that many investors see their previous business model - buy, rehab, and immediately sell - becoming increasingly difficult to execute and are now being forced to rent their properties.
"The recent surge in interest rates has made potential homebuyers nervous," explained Thomas Popik, director of the HousingPulse survey. "If rates go up much more, then a good percentage of them will no longer qualify for the properties they want. As a result, they're making bids on homes and quickly closing before their rate locks expire."
Our New Jersey real estate market is still in a state of flux with constantly changing conditions. Call or email me to discuss your options and where you can find the best home for your needs.
Joe Giancarli, SA
Real Estate Advisor
Short Sale Specialist
609-658-2612
jgiancarli@remax.net
http://www.joegiancarli.com/
http://www.njhomesource.com/
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