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In response to some good news in both the housing and employment areas, mortgage pricing through Fannie Mae and Freddie Mac have creeped up slightly. Is this the end of historic low mortgage rates? Probably not. But it could put a damper on what is currently a very prolific refinance market, which could add strain to some already struggling Idaho mortgage lenders.

Good news in the housing industry is that the sale of existing homes increased. If this trend should continue, it means the abundance of available properties on the market could actually begin to shrink – less inventory means more demand for scarce resources, meaning housing prices will also begin to rebound. Economic principles tell us that the only way real estate prices will recover is if we experience a reduction in inventory.

Despite this good news, it's worth noting that while the number of properties sold rose, the price of properties continued to decline in many areas of the country. It's a delicate balance that requires all the right things at all the right times for the market to begin a true rebound. Idaho home buyers should take note that yes, we're indeed still in a buyer's market – but things can change quickly with rock-bottom prices disappearing as the Idaho real estate market recovers.

Employment, largely considered to be the backbone of the economy, also shed some positive light on the economic situation last week.  Mass foreclosures and Idaho home owners upside-down in their mortgages can be blamed in part on job loss. Families who made payments on time for the lifetime of their mortgage and continued to pay after losing their jobs, depleting their savings, are now at the point where they've exhausted their resources and are now entering the ranks of thousands of other distressed homeowners in foreclosure. The good news: The number of people applying for first-time unemployment benefits dropped significantly to 434,000 last week – down 21,000 from the week before and below what was expected.

With sustained employment industry improvements, we can expect the number of foreclosures on the market to decline gradually and sales of existing home to continue to creep upward. But with these positive changes comes an increase in the price of an Idaho mortgage. Idaho home buyers sitting on the fence should act now to lock in a low interest rate and take advantage of a wide selection of inventory.