Favorable Rates Help
According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 5 percent in the first quarter, up slightly from a record low 4.9 percent in the fourth quarter; it was 5.1 percent in the first quarter of 2009.
Golder says that even with some recent easing of mortgage credit, separate surveys show the housing market continues to be constrained by mortgage issues. “One-third of NAR members report the most important factor limiting potential clients has been difficulty in obtaining a mortgage,” she said.
“In addition, 11 percent of REALTORS® in the first quarter report a contract was cancelled because an appraisal came in less than the price negotiated between a buyer and seller, and another 16 percent report a contract had to be renegotiated because of a low appraisal,” Golder says. “As a result, the housing recovery isn’t as strong as it could be.”NAR