Eugene housing market: Stable in Spring 2010

Mortgage interest rates continue to be very low, below 5%, which are some of the lowest rates most home owners have ever seen. Concerns over European finances caused investors to buy U.S. bonds, which pushed the price down; mortgage interest rates follow the 10 year Government Bond.

Longer term trends are less clear. The Government will begin selling its portfolio of 1 trillion dollars worth of home mortgages, acquired in 2009 & 2010, which will push interest rates up. And, Fannie Mae and Freddie Mac continue to need cash infusion, a sign of a weak national housing market. So far, Fannie has lost $145 billion dollars, a sum more than the combined profit it made in the last 35 years.

Home sales around Eugene Springfield were brisk in April, which seemed to be correlated to the expiring tax credit at the end of the month. The big question in the industry was: would sales grind to a stop? They have not and continue to be in keeping with the busy spring season. Prices have remained stable.

This listing of mine sold received an accepted full priced offer within a couple of days of going on the market. Affordable housing continues to be hot in Eugene.

Affordable houses fly off the shelves.

Affordable houses fly off the shelves.

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