The February national housing sales numbers increased 5.1 percent, but January was exceptionally slow. An all out victory will not yet be declared. The better news is that the housing stimulus package is beginning to work.

• The first time buyer $8,000 tax credit has had measurable impact. From this incentive by itself, the National Association of Realtors estimate an additional 300,000+ housing units sales.
• In some of the higher cost areas, the conforming loan limits have increased to $729,750, making larger mortgages affordable for more buyers.
• The Federal Reserve has been buying mortgage-backed securities with stimulus money. This should have a positive protracted effect on keeping mortgage interest levels at low levels for a longer period of time.
• Afford ability is working. Prices are low. Mortgage interest rates are at historic lows.

On the downside, mortgage underwriting is still atypically rigid. As such, loans are tougher to get. And the processing of home mortgages is taking longer than usual.

While it is too early to see the long term impact, the national numbers are pointing toward recovery. On a microeconomic level, I could not be any busier. This weekend alone, I am going out with four “A” buyers (those who have no home to sell and want to buy TODAY).

As always, feel free to forward your questions to me at Bryan@BryanBomba.com.

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