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February 17th Market Update

By
Mortgage and Lending with Homes Mortgage NMLS# 366970

Good Morning  

 

Interest rates this week have held steady unlike my hands after a few mugs of coffee…not that my caffeine intake has anything to do with interest rates.

 

So, where is housing going in this climate?  According to Fortune, they feel that prices will continue to drop another 5% or so on the national level by weighing it against current rental pricing.  There is  definitely some justification to that historical analysis but I still come to the belief that this market is unlike anything else we have seen and although I would love to believe that we only have 5% to go in home value decline I think the possibility is there for further decline once the governments programs for spurring the home market are gone, namely the current tax credit and the mortgage backed security buying program. We will end up seeing rising rates with less incentive to buy coming through summer into fall….less buyers mean lower prices for those who intend to sell.  I hope it doesn’t cause another deterioration in home values but I am not seeing any proof to the contrary yet.  With any luck, that will change. In the meantime, rates are below:

 

Rates: 30 year fixed at 4.875% and the 15 year at 4.375%.

 

Have a great week!


Matt

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