One of the most firmly held beliefs about the Arizona economy is that it is too dependent on housing. This goes beyond the indisputable point that housing is a big part of the
Wire Reports
However, at the same time, The Federal Housing Finance Agency said prices, on a seasonally adjusted basis, rose 1.7 percent from December to January. Changes in the geographic mix of sales explained the unexpected monthly increase. Home sales included in January’s data were weighted toward areas that haven’t borne as much of the brunt of the housing recession, the agency said.
The index is calculated using mortgage loans bought or guaranteed by federally controlled mortgage-finance companies Fannie Mae and Freddie Mac. It is down 9.6 percent from its peak in April 2007.
The home-price decline was led by a 21 percent price drop in the Western region, which includes
But the pace of home-price declines is slowing as cheaper financing lured buyers and helped offset foreclosure sales. A wave of refinancing is likely to boost home-loan originations by $800 billion to $2.78 trillion, the Mortgage Bankers Association said Tuesday. Refinancing will total $1.96 trillion in 2009 and purchase originations will increase to $821 billion, the group said, as the Federal Reserve buys mortgage-backed securities.
The effect of having the Fed bid in the market is enough to create a refinance incentive for a tremendous number of homeowners, said Jay Brinkmann, MBAs chief economist. The vast majority of mortgages originated before the latter part of 2008 are probably going to have at least a 50 basis point refinance incentive for at least the next several months, with mortgage rates hitting lows not seen since the early 1950s and late 1940s.
Tempe Realtor Dean Tolley is overloaded with foreclosed homes. In the 15 years he has sold homes in the Valley he has never seen so many foreclosed properties on the market. Foreclosed homes now make up the majority of his sales at Century 21. That trend is being seen Valley-wide, with the resale of foreclosed homes flooding the housing market. more…
Pat Shannahan/The Arizona Republic
Home values and home sales declined throughout the Valley and Phoenix in 2008, and hardly any area was spared, not even the better-off areas of north-central
