February 2011

Mortgage rates were on the decline this week, a welcome sign for potential home buyers or those looking to refinance.

The 30-year fixed rate mortgage averaged 4.95 percent this week, down from 5 percent the week prior, according to Freddie Mac’s weekly mortgage market survey. Last year at this time, 30-year rates averaged 5.05 percent.

The 15-year, fixed-rate mortgage also dropped for the week, averaging 4.22 percent, down from last week’s 4.27 percent. The 5-year adjustable-rate mortgage dropped slightly to 3.8 percent, compared to 3.87 percent the previous week.

“Low mortgage rates and home prices are sustaining affordability in the housing market,” says Frank Nothaft, Freddie Mac’s chief economist. The National Association of REALTORS® reported

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Mortgage loan applications increased 13.2 percent on a seasonally adjusted basis compared to one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications survey.

The number of refinancings increased the most: The Refinance Index increased 17.8 percent compared to the previous week. Overall, the refinance share of mortgage activity increased to 65.7 percent of total applications.

Meanwhile, the Purchase Index increased 5.1 percent compared to the week prior.

“Ongoing turmoil in the Middle East brought interest rates lower last week,” says Michael Fratantoni, MBA’s vice president of

WASHINGTON (Reuters) – Sales of previously owned homes set their highest rate in eight months in January, but more than a third of purchases were distressed properties and prices hit a nearly nine-year low.

The National Association of Realtors said on Wednesday existing homes sales climbed 2.7 percent to an annual rate of 5.36 million units, marking the third straight month of gains. Economists had expected a fall to a 5.24 million-unit pace.

Foreclosures and short sales typically occur below market value and their large share of overall sales suggested further price declines ahead.

"What this shows is that there is will be an ongoing adjustment to prices to the downside. Housing fundamentals are still weak,"

WASHINGTON – Home prices in a majority of major U.S. cities tracked by a private trade group have fallen to their lowest levels since the housing bubble burst.

The Standard & Poor's/Case-Shiller index fell in December from November in all but one of the 20 cities it tracks. The 20-city index declined 1 percent.

The only market to see a gain was Washington, D.C.

Eleven of the markets hit their lowest point since the housing bust, in 2006 and 2007: Atlanta, Charlotte, N.C., Chicago, Detroit, Las Vegas, Miami, New York, Phoenix, Portland, Ore., Seattle and Tampa, Fla.

The damage from the real estate bubble now spreads well beyond Las Vegas, Phoenix and

A 12 month look at housing trends for King County including Seattle.

Active vs Sold vs Pending