Mortgage and market update
Interest Rates Maintain Status Quo
The latest information from our friends at the Mortgage Center in Dillon. See below for contact information.
Another week of interest rates that appear to be feeling an “easing” of the upward pressure. Excerpting from financial publisher, HSH Associates:
“With another Fed meeting closing in, fixed rate mortgages (FRM) continue to edge downward… After Fed. Chairman Bernanke’s market-soothing comments last week, a reinforcing shot of lukewarm economic data was all that was needed to put bond and mortgage markets in a more relaxed mood. A slew of data this week pointed to easing economic conditions, but amid some of those came notes of strength, too. Just as they led the way out of the last recession, home sales seem to be leading the downward trend in growth.
Existing Home Sales eased down by 1.3% during June, but the 6.62 million (annualized) rate of sale was actually a little better than expected. However, slower sales means that there is an increasing level of supply for sale, with nearly seven months’ worth of inventory available at the present pace; prices slipped by about 3% on a month-to-month basis. Also during June, sales of new home declined by 3% to a 1.131 million annualized rate of sale. Prices of new homes also slid a little.
While well below their peaks, sales of new and existing homes haven’t crashed, but seem to be pacing lower in an orderly fashion from an extraordinary period, and despite the downtrend, still show resilient strength. Current price and interest rate levels — which combine to produce affordability — are in a mildly restrictive stance, creating drag in the home sales markets. It will take lower prices or lower rates, or a combination of both, to put affordability into greater balance and level off the rate of decline. As rates are expected to be around these levels for the foreseeable future, prices seem likely to be the first to move in a meaningful way.”
The Mortgage Center’s most current rate guidelines are available by clicking here. And, as always, visit our web site at www.morcenter.com anytime you need access to the rates or other mortgage data.
