In May, despite historically low mortgage rates, mortgage originations actually declined, while home prices rose, Reuters reported. The somewhat conflicting data has consumers and analysts alike confused about where the housing market is headed.
“[The year] 2012 will be a very confusing year for consumers,” Stan Humphries, chief economist at Zillow.com, told the Journal. But overall, Humphries was positive. “From month to month, these things are going to bounce around. A single month of bad numbers does not scuttle the housing recovery,” he said.
Humphries also said that while there are many metrics by which to judge the housing market, home values and mortgage rates are the most important. “A lot of buyers try to time the very bottom of the market, and try to avoid any loss at all, but I think that’s penny wise and dollar foolish,” Humphries said. [Reuters]