According to Victor Burek of Mortgage News Daily:
Low housing prices and low mortgage rates are not enticing new buyers to market yet. With the purchase applications index showing disappointing numbers, you would think this would be bad for stocks; however, the futures market is pointing to a positive open. Less home purchases will lead to less buying of furniture, flooring, appliances, etc… which will continue to keep retail sales numbers down. In related news, Home Depot reported a 9.7% drop in first quarter sales while Lowes posted better than expected numbers and gave an optimistic outlook. Chief executive officer for Home Depot gave a less than optimistic outlook due to the rising amount of foreclosures especially on the west coast. It is going to be difficult for our economy to grow until the housing sector starts to see some improvement and foreclosures show a steady decline.
Early reports from fellow mortgage professionals are indicating lenders rate sheets to be very similar to yesterday’s. This will keep the par 30 year conventional rate mortgage in the 4.625% to 4.875% range for the best qualified consumers.
With mortgage rates at the lowest rates in three years, now is definitely time to refinance if one has the equity to do so.
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