Mortgage rates for 30-year U.S. loans declined for the first time in five weeks, reducing borrowing costs from a 10-month high.
This link is from Business Week and discusses interest rates and the housing market last week
It will be interesting to see what interest rates do in the near term. We are starting to see some early sign of inflation which typically drives interest rates higher. However with fewer potential home owners able to get financing it would be natural to see if interest rates will remain at current levels. I would be interesting to hear your opinion on this.
If you do not believe that financing is less available, about 30% of the sales in the last 4 years have been short sales. Those sellers depending on the lender typically are not eligible for financing for at least 3 to 7 years from the time of the short sale. So they are forced to sit on the sidelines and wait.
Senior Loan Officer