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Home Buyers Not Scared by Mortgage Rate Hikes
Date:7/19/2013

d consumers find themselves saying, 'I need to act now before prices go even higher!' or 'My house is going to double in value!' In order for the housing market to continue trending higher, a rosy outlook is essential.

Overall, prospective home buyers seem to keep a balanced outlook according to recent findings in Fannie Mae's June 2013 Monthly National Housing Survey of U.S. consumers. Among the homeowners surveyed, the average expectation of the home price appreciation for the coming year is an uptick of 3.8%. Even though we have watched home prices doubling above June 2012's expectation of 1.9% a year ago, the expectation for 3.8% appreciation is not a wild or unreasonable figure. "To put the 3.8% increase expectation into perspective, according to data provide by Yale professor and housing market guru Robert Shiller, the nominal compounded annual growth rate for U.S. home prices over the last 60 years has been 3.8%," sums up The Motley Fool.

Metro study published a May 2013 report titled Twin Cities Remains One of the Healthier Markets showing casing the Minneapolis metro housing statics against the backdrop of national averages. "Despite slow recovery in new home starts over the past several years, the housing market has fundamentally improved more than most realize. It doesn’t feel like it and it won’t make the headlines, but things have been improving since 2009," said Ryan Jones, Metrostudy’s Twin Cities division director.

According to the Minneapolis Association of Area Realtors, the Twin Cities housing market report for the week ending July 6 showing the foll
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