May 2011

Will Mortgage rates increase or will they stay the same? My opinion is they will stay flat. Fact of the matter is that many people will have a mental effect when rates going into the low 5's and stay there for sometime from the 4's where they have been for a good deal of the last year.

Will foreclosures increase? I do not think we will see a huge increase in foreclosures in May but I do think by the end of the year we will see an overall increase trend.

Do you think it is a great time to consider buying investment property? Yes I do and the reason is prices are still low and inventory is attractive. In many cases properties can cash flow from day one. This had not been the case in most recent years.

Do you think that second home prices have come down? Yes the cape cod and islands have come down in a significant way. At the same time inventory is higher in all price ranges from 200k to the million +. I think it is a great time for people to start considering the dream second home and may is the month to do that.

Do you think people are starting to spend more money on home improvements? I would say yes. The reason is that a top painter I spoke to has seen a great increase in new jobs. As well as a roofer and landscaper. These are good signs for a nice spring and early summer for the trades folks that I know. This is excellent since many have been hurt by this economy for a long time.

I hope this info was helpful. Again the data is one mans view from Holliston MA.

Edward Moloney

Zenith Mortgage

Cell 774-573-0329

Milford MA

NMLS LO# 10321