Welcome to Connie Mahan Real Estate Group

Welcome to Connie Mahan Real Estate Group - your source for Sumter County real estate. 

In addition to specializing in Sumter County, we also service Lake, Pasco, Hernando, Citrus, and Marion counties.

As a full service real estate brokerage firm we work side by side with sellers, buyers, investors, and builders in residential, commercial, vacant land, and property management.

If you own real estate that you're thinking of selling, we would be happy to provide you with a FREE Comparative Market Analysis.

In today's competitive real estate market, timing is everything. Many good properties are sold before they are ever advertised. Beat other buyers to the hottest new listings for sale in Sumter and the surrounding counties with our New Listings Notification

Please browse our website for listings, reports and important local real estate information.

Keeping you updated on the market!

For the week of 

May 18, 2015

Market Recap

Fed Does Nothing, Rates Rise Anyway

Anyone looking to the Federal Reserve for direction on interest rates is looking in the wrong direction. The Fed is standing pat, but the same can't be said for interest rates. The yield on the 10-year U.S. Treasury note is up 35 basis points in the past month.

As the yield on the 10-year note goes, so too goes the rate on long-term mortgages. Over the past month, the rate on the 30-year fixed-rate loan is up roughly 20 basis points. The 15-year fixed-rate loan is up roughly 12 basis points. In many parts of the country a quote of 4% on the 30-year loan and 3% on the 15-year loan is the new norm.

The employment report last Friday exerted some pressure on mortgage rates. Monthly job growth is once again above 200,000. For April, it came in at 223,000. This helped drive the unemployment rate down to 5.4%. That said, not too much pressure was exerted. March jobs were revised down to 85,000 from 126,000. What's more, hourly wage growth remains weak. Wages were up only 0.1% for April.

Many commentators continue to blame Germany for the rise in our mortgage rates. Investors have been selling German bonds in recent weeks. This has driven the yield on the 10-year German bond up 60 basis since mid-April. To be fair, it's not just the Germans. Most Western European countries have experienced a rise in bond yields.

Given the inter-connectivity of markets, it's not unusual for investors on one side of the Atlantic to take their cue from investors on the other side. Demand for U.S. bonds has abated, prices have fallen, and yields have risen. All these interactions have coalesced to give us the mortgage rates we have today.

As to be expected, when rates rise, activity tends to fall. Overall mortgage activity fell 3.5%, according to the Mortgage Bankers Association's latest survey. Refinances bore the brunt of the decline, with applications down 6%. Purchases, on the other hand, actually held steady, with applications down only 0.1%. Recent purchase activity remains positive.

Though mortgages are priced a little higher these days, the good news is that availability is also higher. Indeed, availability has risen quite a bit higher in the past six months when we look at the MBA's Mortgage Credit Availability Index. Standards continue to accommodate more people.

Yes, mortgages rates are higher, but they remain low from a historical perspective. Ten years ago we were looking at 6%-or-more on the 30-year fixed-rate loan. In other words, mortgage financing is still very affordable, and very available.

How CNN Got It Wrong on Housing

Cable outlet CNN came out with an entertaining article title “Here's What's Driving Up Housing Prices.” We say entertaining because CNN's explanation is mostly wrong.

In short, CNN surmises that homeowners aren't selling, builders aren't building, and lenders aren't lending. All are untrue.

The latest data from the NAR show that existing-home sales were up 6.1% in March. This was the biggest monthly jump in 18 months. To have sales, you need sellers. On the other side of the ledger, you need buyers. To say that homeowners aren't selling is a head-scratcher. People are selling and people are buying, and more are doing both according to the latest data.

As for builders not building, the data again show otherwise. CalculatedRiskBlog.com reports year-over-year data for nine major homebuilders. Net orders are up 20.3% and settlements are up 13.8%. Homebuilders are building more and selling more. What's more, they are getting more for what they are selling. The average new-home price is up 3.8%.

To counter the claim that lenders aren't lending is hardly worth the effort. Lenders are lending, and they are lending to more people. Look no further than the trends in purchase applications and the availability index (featured above). 2010 is five years ago. It's time to live in the present.

So what is driving up housing prices? There are myriads of variables that impact housing prices, and most are specific to the local market. All we can say is that houses are being sold, built, and financed. The proportion, though, is unique to each market.

If you have any questions on the local market in your area or would like to discuss your next real estate step, don't hesitate to contact us.

We can schedule a "no strings attached" appointment to fully review your options in this market.  We have an action plan for you!

My team and I are diligent in our efforts and prove it with our results!

Don't wait, call or email today.
We look forward to hearing from you.


Connie Mahan
Connie Mahan Real Estate Group Inc.
352-457-7553  Direct
352-569-0233   Office
866-819-0089  Toll-free fax


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Connie Mahan 218 N Florida St
Suite 1
Bushnell, FL 33513 Email Connie