economist: Existing Home Sales Indifferent To Rising Mortgage Rates
- 07/30/09 01:49 AM
With so much continuing to be made of a housing recovery being contingent upon historically low mortgage rates and a cheap Fed funny money monetary policy, I thought it would be worth revisiting the ongoing relationship between existing home sales and mortgage rates that continues to defy some of the most seasoned economists' logic, including NAR's own Lawrence Yun. Here is a comparison between NAR's seasonally adjusted existing home sales and Freddie Mac's 30-year fixed rate mortgage survey over the past several months, this data reveals that record low mortgage rates have had no meaningful impact on demand. You can call it the law of diminishing … (5 comments)
With so much continuing to be made of a housing recovery being contingent upon historically low mortgage rates and a cheap Fed funny money monetary policy, I thought it would be worth revisiting the ongoing relationship between existing home sales and mortgage rates that continues to defy some of the most seasoned economists' logic, including NAR's own Lawrence Yun.
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