National real estate highlights from last week

The Pending Home Sales index came in last Wednesday a blip UP for May over April. This was the first time we had four consecutive monthly gains in the National Association of Realtors index since October 2004. And May's number was up 6.7% over a year ago.

Also on Wednesday, the government announced that homeowners who are underwater up to 125% can refinance under the Obama administration's Home Affordable Refinance Program (HARP). They have to be current with payments and the loan must be owned or guaranteed by Fannie Mae or Freddie Mac. They're boosting the program's loan-to-value (LTV) ceiling from 105% to 125% so more homeowners can take advantage of lower mortgage rates. The idea is to have HARP prevent more foreclosures to help stabilize the market. Details are available at www.makinghomeaffordable.gov.

Another sign of hope came last week from the S&P Case-Shiller home price index. We feel this index is negatively biased in tough times, yet April's reading showed the third straight month of DECREASING home price declines. There were even HOME PRICE INCREASES in some of the 20 US cities included in the index. Moody's Economy.com chief economist Mark Zandi chimed in: "The long and painful crash in the housing market is coming to an end."

~ Courtesy of Chuck Chrobak, Golf Savings Bank, 425.330.9657, CChrobak@GolfSavingsBank.com