Time to buy, buy, buy!

TIME TO LEVERAGE THE HOUSING BET?
With the Fed helping push mortgage rates below 3.5%, the housing market recovery is gaining momentum. In fact, the mortgage rate is now below the appreciation rate over the past four quarters  a relatively rare occurrence, which last happened over six years ago.  This is an extremely bullish condition, which historically has been associated with very rapid house price gains. When the appreciation rate has exceeded the financing rate, house prices have increased at a 10.2% annual rate. This “positive carry” is very important to potential buyers, especially investors, who account for one out of five transactions.  (Ned Davis)

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