Further, the Fed will release its policy statement next week, giving financial markets a better sense of what future actions the Fed may be contemplating. All of this will help determine where mortgage rates will be in the near future.
More Quotes from Frank Nothaft:
Concern over weaker consumer confidence and industrial production outweighed the pick-up in retail sales and business inventories causing interest rates to decline even further this week. Adding to the decline was a flight-to-quality in the bond market from nervous investors worried about falling stock prices and the possibility of war in the Middle East.Frank Nothaft
Low new home sales figures released yesterday support the idea that the Fed's actions to keep inflation under control are finally having the desired effect.
Frank Nothaft
Over the past five weeks, mortgage rates have remained within a narrow range of 0.1 percentage point around this week's averages.
Frank Nothaft
The refinance share of mortgage applications in the fourth quarter of 2005 was 45 percent while the average rates on 30-year fixed-rate mortgages climbed 0.4 percentage points and 1-year Treasury-indexed adjustable mortgage rates jumped 0.6 percentage points from third-quarter averages. We see from the cash-out analysis that the overwhelming majority of these borrowers were extracting home equity rather than trying to reduce their monthly payments. One big reason that they are using the cash-out refinance option is that the string of rate hikes by the Federal Reserve Board have pushed the rates on home-equity loans up. Home-equity loans are typically linked to the prime rate, which currently is at 7.5 percent. In contrast, the average rate on 30-year fixed-rate mortgages is presently near 6.25 percent.
Frank Nothaft
Looking ahead into the spring home buying season, we don't expect mortgage rates to rise too much or too quickly in the near term. As a result, housing activity should stay on track for a strong 2005.
Frank Nothaft
Although the 30-year mortgage rate ticked up this week, which wasn't completely unexpected, it is still below last year's annual average and well below where it was at this time last year,
Frank Nothaft
Readers Who Like This Quotation Also Like:
Based on Topics: Charity Quotes, Future QuotesI have measured out my life with coffee spoons.
T. S. Eliot
And the goal really is to make the audience laugh, to bring them some joy.
Todd Barry
Staid middle age loves the hurricane passions of opera.
Mason Cooley