Thanks to our sagging economy, mortgage rates are dropping again. The average 30 year fixed rate mortgage nationally is around 5.50% with average 15 year fixed rates under 5%. This is good news once again for prospective new home purchasers as well as existing homeowner's looking to refinance (either to lower their rate or to take cash out of their equity).
I have always felt that the jobs and unemployment numbers the government releases (and which have an effect on both our stock and bond markets, the latter which drives mortgage rates) are flawed. Especially the unemployment numbers. The reason is that there are many people in our current economy who fall off of the reports because they've been out of work too long and their unemployment benefits have expired. This can lead, like they did a few months back, to artificially positive numbers. The June jobs report was lower than expected, meaning less jobs were created than anticipated by the "experts". This is not really a surprise, I don't think, since I continue to see companies going out of business and few new businesses opening.
While this indicates to me that the economy is not yet moving in a positive direction, it does mean that my business will hopefully begin to pick up! It should, considering housing prices are low and rates are low. This is not usually the case in the real estate market. Please contact me for your new mortgage and I'll have you in your home in 2 months! No kidding!