Fiserv, a technology company that provides software solutions for the financial services market, has predicted that property values will increase an average of 7.2% across the nation by 2014. Of course, there are some areas that have been hit harder than others during this housing crisis. Some of those are predicted to see much bigger gains in values during the same time period.
According to Fiserv's predictions, the top ten gainers will be:
1. Washington State: Bremerton-Silverdale, +44.7 percent
2. Oregon: Bend, +33.6 percent
3. Michigan: Detroit-Livonia-Dearborn, +33.1 percent
4. California: Napa Valley, +31.7 percent
5. Nevada: Carson City, +31.6 percent
6. Florida: Panama City-Lynn Haven-Panama City Beach, +26.9 percent
7. Arizona: Flagstaff, +26 percent
8. New Mexico: Sante Fe, +25.8 percent
9. Wyoming: Cheyenne, +23.7 percent
10. Alaska: Anchorage, +20 percent
In the meantime, mortgage rates continue to hit new record lows. In Oregon, there are lenders offering 30 year fixed rate loans as low as 4.125% for the most qualified borrowers. FHA rates are following very closely with conventional rates and are available as low as 4.25%!
It is forecast by many that mortgage rates are likely to remain low until after the November elections, and then forecast to begin to rise. Mortgage rates tend to follow the 10 year Treasury bond yield - which is currently at a startling 2.81%. Earlier this year, the rate topped 4% for a brief period which drove mortgage rates above 5%.
Just a reminder that while FHA rates and mortgages are currently very attractive, the fees for these loans are scheduled to begin to rise, very dramatically, beginning September 7, 2010. The increase in fees will effectively increase the rates that home buyers will pay for those loans.
For more news about the increases in FHA fees and how these increases will affect monthly payments, please read FHA fees slated to rise again...
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Resources: Taos, NM Market Warming
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