According to the US Fedreal Government and CNN Money, we have added 216,000 new jobs in the month of March alone as well as 10,000 less unemployment claims being filed. The full news areticle is here http://money.cnn.com/2011/04/07/news/economy/initial_claims/index.htm.
I believe that the above fact coupled with inflation concerns and a significantly decreased appetite for US backed long-term treasuries (30 year yield has reached almost 5%), will give the Federal Chair, Ben Bernanke, the leverage needed to increase the key interest rate the US government charges banks.
On average, the 30 year fixed home mortgage rate now stands at 4.89%. That number is up almost 1% since last year.
Once I crunch all this relevant data into my home price algorithm (my brain), I come up with the following projection for North Orange County: 7% to 10% median home price reductions over the next 10 months.
Please let me know what you, my readers and homebuyers, the consumer thinks will happen in the near future.