There are 326 condos for resale on Singer Island; 16 condos are currently pending. Two condo sold within the past 7 days at 80% and 90% of their respective list price after being on the market for 659 and 72 days, respectively.
Rates for the 30-yr. fixed mortgage remained below the 5% benchmark falling to the lowest levels of the year, going from 4.79 percent to 4.72%. This time last year the 30-year average was 5.59 percent. The average 15-year fixed mortgage rate fell slightly from 4.20 percent last week to 4.17 percent, the lowest on record since August of 1991.
Though mortgage rates are at attractive levels, the housing market hasn’t benefited. The number of customers applying for a mortgage to purchase a property fell to the lowest level in 13 years last week and was down 35 percent from a month ago, according to the Mortgage Bankers Association.
That’s a sign the market is struggling without a tax credit of up to $8,000 for first-time buyers, which expired at the end of April.
The government has taken massive steps to help the housing market recover. A campaign by the Federal Reserve to reduce borrowing costs for consumers pushed rates down to extraordinarily low levels last year. Rates were expected to rise after the program ended this spring, but have fallen instead over the past two months.
Investors, wary of the European debt crisis and the turbulent stock market, have shifted money into the safety of U.S. Treasury bonds. That has pushed down the interest rate, or yield, on U.S. Treasury debt. Fixed mortgage rates tend to track that yield.
More recently, the latest report on the U.S. employment picture showed that few private-sector jobs are being created. That made investors nervous about the stock market and pushed up bond prices, which pulls down rates.
The majority (56 percent) of mortgage industry experts polled by Bankrate.com expect the rates to remain relatively unchanged in the next 30 to 45 days; 44 percent predict an increase while no one expects rates to fall.
For more information on specific condominium sales activity contact Jeannie at 561-889-6734 or email her at [email protected]