Additionally, applications for home purchase were the highest ever recorded last week, according to the Mortgage Bankers Association, which also reported that refinancing activity reached almost 50 percent of applications over the same period. The housing industry continues to amaze us.
More Quotes from Frank Nothaft:
Mortgage rates have been under 7 percent for the past eight weeks. During that time, mortgage applications for home purchases have continued to reach historically high levels, keeping home sales moving at a vibrant pace.Frank Nothaft
Not only did the market get good news about September employment last week, but it was further bolstered by the upward revision of jobs in August, ... This inspired a little optimism in the market that we may have bottomed out as far as job losses are concerned.
Frank Nothaft
We expect rates to continue to rise gradually over the next 12 or so months. Because the housing sector is so sensitive to fluctuations in interest rates, this will have the effect of returning the housing sector to a more normal pace of activity, by historical standards.
Frank Nothaft
Additionally, the Federal Reserve Board appears to be on target in quelling any future surges in inflation.
Frank Nothaft
That said, January housing starts were the highest in over 20 years, and that is based on higher rates than we are currently experiencing. All in all, the little run-up in rates that occurred this week will not be enough to cause a significant slowdown in current housing market activity.
Frank Nothaft
And speculation that the Federal Reserve may soon take a break in raising short-term rates reduces upward pressure on long- and short-term interest rates.
Frank Nothaft
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