Will the President-Elect Obama Administration Help the Ailing Housing Markets?
Congratulations to president-elect Obama and the hope his election brings for change in the economy and housing markets. No one can predict if his administration will help our ailing business environment, but hey, he can't do any worse than his predecessor.
Hopefully, the newly formatted staff on capital hill will enact legislation aimed at stabilizing housing prices. This is the number one area of concern for the revitalization of the economy in my opinion. The stabilization effort needs to be attacked on two fronts. The first being real legislation aimed at keeping struggling homeowners in their homes. The second front should be aimed at stimulating home buyers to purchase new and existing homes. Continued depreciating home prices will only continue the downard descent of our economy.
On the mortgage refinance rates front, the thirty year fixed rate jumped to 6.47 percent last week as mortgage purchase and refinance applications took a slide. Mortgage lenders are still hoarding cash and keeping the mortgage spread premium at higher than normal levels. This coupled with last week's jump in the 10-year treasury yield has caused the bump up in interest rates.
Those refinancing now are still in good shape on a historical level as a 6.5 percent 30 year fixed rate is relatively low. The 10 year yield has dropped a bit this week and we are experiencing a slight drop off that 6.5 percent level for those looking to lock a rate now.
Keep an eye on upcoming housing numbers as this will be a leading indicator for not only refinance rates, but the economy as a whole.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Hopefully, the newly formatted staff on capital hill will enact legislation aimed at stabilizing housing prices. This is the number one area of concern for the revitalization of the economy in my opinion. The stabilization effort needs to be attacked on two fronts. The first being real legislation aimed at keeping struggling homeowners in their homes. The second front should be aimed at stimulating home buyers to purchase new and existing homes. Continued depreciating home prices will only continue the downard descent of our economy.
On the mortgage refinance rates front, the thirty year fixed rate jumped to 6.47 percent last week as mortgage purchase and refinance applications took a slide. Mortgage lenders are still hoarding cash and keeping the mortgage spread premium at higher than normal levels. This coupled with last week's jump in the 10-year treasury yield has caused the bump up in interest rates.
Those refinancing now are still in good shape on a historical level as a 6.5 percent 30 year fixed rate is relatively low. The 10 year yield has dropped a bit this week and we are experiencing a slight drop off that 6.5 percent level for those looking to lock a rate now.
Keep an eye on upcoming housing numbers as this will be a leading indicator for not only refinance rates, but the economy as a whole.
May the Mortgage Refinance Rates be with You!
Refinance Tool Box
Labels: business, economy, finance, money, mortgage rates, refinance, refinance rates
posted by Jim Bisnett at
12:17 PM
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