The Real Estate market is driven by two primal forces: housing sales and mortgage rates. Ironically when one shows signs of improvement, the other takes two steps back. Take for instance this weeks sudden spike in mortgage rates, spurred by consumer confidence and an unexpected 16% increase in new home sales. One would think that these reports would work in their favor when applying for a loan...but they don't. This week's average 30 year fixed rate mortgage rose more than an .125 of a point and the Feds speculate rates to climb for the remainder of the year.
Don't get me wrong, I'm all for a flourishing economy but does this drive anyone else of the wall? If only I could have a word with Mr. Cournot and Mr. Marshall right now...
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