Bad news for those under contract without a rate lock: the monthly payments will be higher than originally calculated. This will cause some contracts to fall through. This jump does not seem to be related to the Fed's expected exit from the mortgage market by March 31.
Read more about the rate jump at Mortgage News Daily.
*Home sales were down in Charlottesville and Albemarle for February, as detailed in this post at RealCentralVA.
*Nationally, existing home sales declined in February, and new home sales were at a record low in February.
*Here's how one correspondent, a local mortgage professional, characterized the market:
What is telling to me is the CAAR site has about 250 more listings right now than last month, average DOM is up, median price is down. Tax credit expiring in 5 weeks, USDA is out of funds, FHA will boost up front mortgage insurance from 1.75 to 2.25% on 4/5/10. This year will be much harsher than last year in terms of actual sales and falling values. We are in an L shaped recovery assuming we have hit the horizontal line....(emphasis is BBs)
In addition to lower sales and confluence of reasons pushing prices down, with the arrival of Spring, local inventory has jumped over the past month.
In Charlottesville and Albemarle, there are 1367 offerings, including
Albemarle: 714 single family homes- 32 single family homes sold in Albemarle in Feb. 2010
Charlottesville: 240 single family homes - 5 single family homes sold in Charlottesville in Feb. 2010
Some data and visuals from RealCentralVA:
Charlottesville and Albemarle closed sales February, includes detached, condo, townhouses:
64 - 2010
79 - 2009
72 - 2008
105 - 2007
141 - 2006
124 - 2005
108 - 2004
Properties that went under contract in February. How many will fall out of contract, due to higher mortgage rates (or contingencies)?
March 2010 (thus far) has generated a few more contracts than February. How many will fall out of contract, due to higher mortgage rates (or contingencies)?
CNBC: Loan Volume Was Already Falling Fast, Before Rate Jump
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NYT Economix Blog: The Housing Crisis and the Resentment Zone