Mortgage Rates Fall

[samantha83]

Mortgage rates changed course last week with average 30-year FRMs falling by as many as ten basis points to close at 6.35%, and average 5/1 ARMs slipping by six basis points, to close at 6.18%.

This reversal in average mortgage rates cannot be taken as tangible indication of a downward trend. The main reason being that factors that contributed to an increase in mortgage rates in the first place, such as wage-induced inflation and employment patterns, remain largely unchanged. One other factor that could have influenced mortgage rates in the past week may have been the veering of investments from stocks into bonds.

Inflationary pressures still continue to cast its shadow on the economy. That inventory stocks are gradually getting depleted and needs to be restocked, spells more activity for the manufacturing sector. Further activity in the housing sector will also depend on existing inventories and trend in mortgage rates. In the meanwhile, surveys indicate that nearly half of all mortgage applications continue to be for refinancing.



Cheers
Rob Thomos

[admin]

Sounds like the perfect time to buy a home and apply for a mortgage before the trend swings upward again.

The nations largest builder of manufactured homes is now liquidating its repo stock and offering favorable financing to move these homes out of their inventory.

There are also thousands of private sellers struggling to sell existing homes from coast to coast. Many expected to make easy sales due to the recent housing boom, but are now finding that the market has changed and are lowering prices to meet market conditions.

The current buyers market may not last much longer. We are seeing the local surplus of overbuilt homes get smaller and smaller every week,. When the overstock is gone it is almost certain that home prices will take a jump up. Inflation is a big factor of the current economic trends. As with everything else the cost of building keeps rising, almost daily.

Home prices may never be lower than they are at this very moment. If you have plans to buy dont miss this window of opportunity.