Good morning,
I have attempted to explain my thoughts on why interest rates are currently lower than they should be and why that will change in the coming year. Yesterday, I came across an article from CNN that goes a little further in depth in explaining it. If you are interested in checking it out, feel free to read up.
The big economic news today was that new housing construction has dropped over 10% in October. There seems to be some debate between economists on this being good or bad. On one hand, you have the fear that this trend will continue and that meaning that the housing industry will be slowing down. The other side of the coin is that with fewer new homes to buy, this could lead to more existing homes being purchased. Will either happen? Probably a little of both but only time will tell how dramatic this number ends up being or if it just ends up being another stat for economists to debate over until a new number comes and piques their interest.
The market has been holding fairly steady this past week and we have seen rates lower slightly from last week with the 30 year fixed at 4.75% and the fifteen year fixed at 4.25% although they are looking to head back up by the end of the day again.
Have a great week!
Matt
Happy Veteran’s Day!
First and foremost, I want to send out my thoughts and wishes to our troops, especially with the recent tragedy at Fort Hood.
For those of you who haven’t heard, the Homebuyer Tax Credit has been officially extended until the end of June. One key component of this is the additional incentive added for homebuyers who have not purchased a home in the past five years. Previously ineligible, they are now offered up to $6,500 as a tax credit if they buy in this extended time frame as well. Although I think this is a great gesture for current homeowners, I feel that few will be able to take advantage in such a short time frame unless they were already working on selling their current home.
The market has been holding fairly steady this past week and we have seen rates creep back down from this time last week with the 30 year fixed at 4.875% and the fifteen year fixed at 4.375%.
Until next week,
Matt
Good Morning,
I was able to watch the Vikings/Packers game from an unusual spot this weekend, the hospital. A small kitchen accident resulted in a few stitches to my hand. Luckily, they had a TV in the room to keep me occupied. As a Vikings fan, I am glad that they got the win but I still would have no problems taking on Aaron Rogers for our Quarterback either. Favre is a good Q but boy does he come with a lot of drama and media circus people.
So on to the market. We have been seeing rates creep up slightly over the past week. We fully expect to see this trend continue and here is why: The Federal Reserve’s Mortgage Backed Security Program has spent almost $980 Billion of the approved $1.25 Trillion. What this means is that the Fed won’t be able to keep the false levels of interest rates we have seen for the past six months constant much longer. They have been purchasing excess supply to keep prices stable for quite some time and as they get to the bottom of their fund, rates will undoubtedly rise. The only real question what levels they will rise too.
That’s all for now,
Have a good week.
-Matt
30 year fixed: 5.000%
15 year fixed: 4.375%
Good Morning,
I’m happy to say that I’m feeling much better than last week and dare say I’m 100% back to health. You’ll see rates have held steady again this past week so on to other news.
It appears that the Senate will be approving the first time homebuyer tax credit extension. They were unable to finish the vote yesterday so details are still to be decided and finalized as far as any changes and dates for the new extension but anything short of a vote to deny sparks a good sign for it’s passage going forward. We should have a definitive answer by next weeks update.
As expected, new home sales are being reported as encouraging with inventory levels dropping to 7 months across the country compared to over 12 back in January. Many believe that the homebuyer tax credit has helped get the home market moving again.
That’s all for now,
Have a good week.
-Matt
30 year fixed: 4.875%
15 year fixed: 4.375%
Good Morning,
With rates unchanged and me sitting at home with a sinus infection, I’ll keep this one short and sweet. Rates are below and we’re hoping they will hold here for the coming week.
Have a good week.
-Matt
30 year fixed: 4.875%
15 year fixed: 4.375%
Mortgage Planner of 8 years, specifying in ensuring that homebuyers both understand and enjoy the mortgage process, not worrying about last minute changes and closings not happening.
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