A Relatively Stable Market Keeps Mortgage Refinancing Alive in Philadelphia

By Richard Barrington
Local Lender Columnist
May 9, 2008
Unlike much of the country, Philadelphia has enjoyed a relatively stable real estate market recently. Coupled with mortgage rates that have trended downward overall since last summer, refinancing becomes a possibility for some home owners.

In other parts of the country it is the ultimate good news/bad news situation. Mortgage rates have fallen, but many home owners haven't been able to take advantage of refinancing because their home prices have also fallen sharply. Fortunately, the story appears to be a little different in Philadelphia.

Philadelphia Enjoys Stable Housing Market -- for Now

In 2007, a year which saw declines in home prices across the country as a whole and double-digit declines in some markets, Philadelphia's real estate market enjoyed a period of relative stability.

The median price for homes sold in the Philadelphia area actually increased 1.8% in 2007. A modest achievement perhaps after the roaring real estate markets earlier in the decade, but a welcome accomplishment nonetheless considering the price declines suffered by many parts of the country. However, the one ominous note is that sales volume declined 11.1% in 2007, which may be a hint of coming weakness in the housing market.

Mortgage Rates Present Refinancing Opportunities

Mortgage rates have also presented refinancing opportunities, though sometimes on an elusive basis. Thirty-year rates actually dropped substantially below 6% for a brief period earlier this year, before bouncing back above 6% in recent weeks. Still, this is low relative to the level of mortgage rates over most of the past three decades.

In this fast-moving environment, home owners should seize refinancing opportunities when they can, because the opportunity that is here today may well be gone tomorrow.

Source:
The Philadelphia Inquirer

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.