The $787 Billion stimulus plan called the American Recovery and Reinvestment Act (HR 1) conquered headlines last week when it was signed into law on Tuesday, February 17th. Portions of the bill of particular interest to the real estate community are: The $8,000 First-time Homebuyer Tax Credit and $11 Billion Appropriated to USDA Rural Development Loans (click the links for details on those portions of the bill).
A day before our gargantuan stimulus passed, President Obama also announced details of his Homeowner Affordability and Stability Plan which he hopes will stabilize housing by reducing foreclosures and keeping mortgage rates low. Full details of the plan will be announced on March 4th, but here is a preview of the program in the meantime.
Mortgage Rates
The stock market plunged 7% last week, but that unfortunately didn't translate into significantly lower mortgage rates. The week ended with an average 30 year fixed rate of 5.34%, down slightly from last week's 5.44%.
What to Look Out for This Week
A few reports could affect mortgage rates this week, including:
Wednesday: New Home Sales Report
Thursday: Existing Home Sales Report and Durable Goods Report
Friday: Gross Domestic Product (GDP) Report, as GDP is the broadest measure of economic activity
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