Some cities are almost back to their highest home prices

Highest home prices

This is interesting stuff. Certain cities in Texas, and Co hit  highs in their home price index. They are almost back up to the highs hit in 2007. Of course, we in Southern California are still way off the peak.

Hard to believe we went down so much. I remember having a conversation with Bruce Norris in 2005 and we talked about the possibility of the real estate market dropping by 50 %. Gulp!!!

Read This Article. It contains state by state stats.

Will Rate Increases Impact Home Prices?

Mortgage Interest Payment

From May 3 to July 12th , interest rates really zoomed. Is it enough to stall the housing recovery? 

Fannie Mae’s Mark Palim says there is no historical precedent for knowing the impact on the housing market of an interest rate change, either up or down, because of a Federal Reserve policy of quantitative easing.

In studying the history of a correlation between rate increases and housing prices,  it suggests that while there is little correlation of rate changes with home prices, but rapid rate increases do contribute to a decrease in home purchase volume and an increase in the use of adjustable rate mortgages (ARMs).

read the article:

Buying beats renting after 3 years

Interesting study from Zillow. It depends on where you live but here in L.A. the magic number is 4.3 years if you made a 20% downpayment. Because home prices and interest rates are low and rental prices are high, this is a great time  to buy.

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