Along with the Spring Flowers We Welcome Promising Numbers in the Housing Market

The good news keeps rolling in about the small but important turnaround underway in the home real estate market.

Last week's headliner was the second straight monthly gain in pending home sales -- up nearly 11 percent in the Northeast, 15 percent in the Midwest, and 4.4 percent in the Southern states.

On top of that, the ability of consumers to buy a house, as measured by the National Association of Realtors' Affordability Index, hit a record new high last month thanks to declining home prices and record-low mortgage rates.

Bottom line is that median priced houses haven't been more affordable to more households in decades!

Mortgage rates continued to drop last week -- even from the record lows the week before, according to the Mortgage Bankers Association. Thirty year rates now average just 4.6 percent and 15-year fixed loans average 4.45 percent with about a point.

Meanwhile, there were other positive economic signs popping up like spring daffodils. For example, both the major indexes that measure consumer confidence, which is a key driver of home buying, were up slightly in the last month. The University of Michigan's survey and the Conference Board's index both registered small gains. Both, however, remain at low levels in comparison to non-recession periods in past years.

Also, Consumer spending registered a small increase, up by seven tenths of a percent in the last month. Personal income was up slightly as well.

All in all, not a bad set of reports in the middle of an economic recession and financial crisis.

It all points to much better days for real estate as we proceed through the year.

For information about finding or selling a home feel free to contact bill.swanson@cbshome.com or visit www.billswanson.com today.