The industry is starting to see a movement we all have been expecting, it is the time of year people start to make moves, before children are back in school. This morning rates came in at 5.375% with 1 point paid, FHA about the same.

This does not mean the housing industry is going to boom but it does mean a purchase will cost a bit more in the long run. Prices are staying at a low, because of such a large inventory although that will be coming down as people buy before the interest rates start their upward trend.

The recession is not over, but the housing market is starting to have a much prettier picture than the last 10 or 11 months. Builders are starting to build again with new and older homes selling if priced to market value, a gradual recovery is still expected due to the economy.

Do not think gloom and doom, it is still a good time to buy or sell. With rates at 5.37% today it is still a good rate to purchase a home, but rates want to be watched carefully as indications show they will continue to raise some the rest of this year.

Overall, it has been a fair year in the South Sound area, compared to the news we hear from the media about how bad it is in other parts of the country. So all in all The Sky is not falling as predicted by Chicken Little but interest rates are climbing.