Home Sales Up While Refinance Rates Little Changed on Week

Sales of newly constructed homes rose in September, according to the monthly report from the U.S. Census Bureau, moving up 2.7% from August. You might think this is a good sign for our ailing housing market, and maybe it is, but sales are up where prices are the lowest. At least bargain hunters are now entering the home purchase market and that is a welcome change. On average, home prices are down almost 10% nationwide and still weighing heavy on the refinance and home purchase mortgage lending business.

Mortgage refinance lenders are still not stepping up to the plate and all indications are that increased lender participation for mortgages will remain flat until housing stabilizes.

For the week, mortgage rates have been somewhat stable as the 10 year treasury yield continued it's yo-yo movement, but in the end remains constant.

The future of home sales is really uncertain, but is now becoming affected by job losses. One of the most important factors affecting home sales is of course jobs, but with current economic conditions, it may be some time before level out on the job front.

Look for continued volatility for refinance rates as we finish up with 2008, and good riddance! Again, if you are considering a refinance now that will provide you with solid benefit, look to lock on the dips. Mortgage refinance rates are still in great shape on a historical perspective.

May the Mortgage Refinance Rates be with You!

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