May 22nd, 2010 7:52 AM by Richard T. Cirelli
THE IMPACT OF THE TAX CREDIT:
On a national level, Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and are at their lowest level since November 2009....However, refinance borrowers did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks."
On a more local level.......
The data seems to suggest that our local housing market is hotter than the rest of the country. The number of home sales has steadily increased over the past several months and home prices have risen in may local markets too. My own observation is that the purchase market is getting stronger, based on the number of pre-approval letters that I write for clients making offers. Realtors and Title Company friends are also telling me that their business has increased too. I am seeing the higher priced markets moving.