Strong Economy = Rising Rates

BruceBrown — Mon, 18 Jun 2007 20:51:00 GMT

With both U.S. and world economies improving, the bittersweet result is that residential mortgage rates have risen to higher levels. Concerns about inflation and rising bond rates resulted in 30-year fixed rate conforming mortgages rising to an average of 6.84%. While a slight further increase in rates won’t be a surprise, the recent tightening is not interpreted as the beginning of major rate climb.Combined with softening housing prices in much of the country, this is a great time to be a buyer, even with the slightly higher loan rates. In the greater Wilmington area, the buys, especially on or near the barrier islands look like great bargains in many cases compared to the prices in comparable or the same properties in 2005.

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Mortgage Notes

BruceBrown — Mon, 04 Jun 2007 18:56:00 GMT

The U.S. economy is measured in many ways, with factual data assigned different meanings based on the best analysis, tools, and often the bias of the observers. What is clear from recent reporting in the national media, at least from our viewpoint, is that the economy isn’t going into a steep decline nor is it soaring quickly to record heights. We’re somewhere in the middle, holding fairly steady. Gross domestic product data from earlier this year points downward, but employment, consumer spending, durable goods orders, and non-residential investment numbers are all higher, pointing to a rebound. So here’s a fact: mortgage rates for 30-year loans averaged 6.42% last week, according to nationwide mortgage source Freddie Mac. Loan rates remain attractive for both residential and investment loans. While are not at the historical lows reached at times during the past four years, mortgage rates are still low enough not to be a barrier for most people.

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Money : Mortgage

Strong Economy = Rising Rates

Mortgage Notes