* 725 closed in the month of June

June - the start of summer and a "new" real estate market. In June, we experienced a significant increase in residential listings, sub-prime lending fall-outs, and fluctuating interest rates. The real estate market has moved more to a buyers market depending on location and price, and we have seen a large fall-out in qualified first time home buyers. This fall out, in my opinion, is what has caused the real estate market to change. The circle has been broken - here is what I mean- the first time home buys a starter home or first home, this seller then buys their second home, the seller of the second home then buys their third home, the seller of the third home then buys their fourth home. When the circle is broken as in this market with the first time home buyers it affects the whole market. I see the increase in listings as potential buyers if they were able to sell their existing home. Will this correct itself? I believe it will, mortgages will conform to meet buyers needs, wages will increase causing an increase in qualified buyers or buyers will do what it takes to get themselves qualified.

There is great competition for buyers right now in every price range, now is a great time to buy!

Interest rates have risen to 6.50% for a 30-year fixed with no points.

In true form, the Fed chose their words very carefully, saying that inflation had improved modestly, but that a "sustained moderation...has yet to be convincingly demonstrated." But it's their job to be on guard against inflation - so no real surprises there. But on Friday, along came the PCE Index with some hard data on inflation - and it showed that the current year-over-year pace of inflation is down to a friendly 1.9%. Not bad, and within the Fed's desired range of 1 - 2%. So everyone was reasonably happy, no word-eating was required for the Fed, and home loan rates improved about .125% on the week overall.  For next weeks forcast be sure to read on in this weeks weekly mortgage update.

Weekly mortgage update.