Is the improving housing market likely to continue into 2013? Most signs are pointing in this direction as homes are selling at a relatively brisk pace, time on market has decreased, continued decline in distressed properties, and we are seeing multiple offers on home price correctly priced for their condition.
The fiscal cliff was avoided after a last-minute deal was passed in Washington and the Mortgage Forgiveness Debt Relief Act has been extended through 2013. The measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including any principal reduction) or foreclosure.
What does all this mean for home loan rates? There is still uncertainty as how Congress will address the debt ceiling and if the Fed will stop sooner than initially planned their rounds of bond buying known as Quantitative Easing. After hearing this news, the bond market and rates went up slightly. As long as there is uncertainty in the markets investors will most likely continue to see our bond market as a safe haven for their money as noted in the weekly economic suumary from Bank of America. Rates are still low and are likely to inch up some this year, however it is still a great time to refinance or buy. If you need a referral for some great lenders, please contact me via my site.