Despite the Mortgage Bankers Associations report two weeks ago that purchase applications fell to a 13-year low, mortgage analysts now anticipate home sales to restart yet again as the deadline for the $8,000 first-time homebuyer tax credit and the $6,500 move-up homebuyer tax credit. Lawrence Yun, Chief Economist for the National Association of Realtors, says the recent decline in purchase transactions is due in large part to the delay among homebuyers that have been searching for a home, then ultimately closing on it.
People who got into the market after the homebuyer tax credit was extended in November have only recently started to offer contracts, so it will take a couple months to close those sales. Overall the doom and gloom of the market seems to be a figment of imagination. Jobs also seem to be stabilizing in the 9.5 to 10% range thus we can probably see a decline in the unemployment number very soon.