Buyer purchasing power determines home prices

Here is an informative article that goes into detail about current buyer strength in today’s real estate market. Let me know what you think.

30-year fixed rate mortgage (FRM) rates in California fell to 3.31% in November 2012. One year earlier, the rate was 3.99%. This translates to an 8.99% increase in mortgage funds available to today’s buyers. This purchasing power index of 8.99 is a big step up from the modest 3.66 index in November 2011.

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