Declining mortgage rates may not boost housing

Image_Graphic_credit__BankRate posted MHProNews.comCNBC reports that one outcome from the debt ceiling hike debate was a drop in the Treasury rate.  This in turn moved mortgage rates to near new lows.  30 year rates are at 4.45 percent from 4.57 percent, and the 15 year rate made a new low of 3.52 percent, per the Mortgage Bankers Association. Rates pushed refinance applications up 7.8 percent and purchase applications up 5.2 percent (both seasonally adjusted). “Refinance application volume increased, but even though 30-year mortgage rates are back below 4.5 percent, the refinance index is still almost 30 percent below last year’s level. Factors such as negative equity and a weak job market continue to constrain borrowers,” notes the MBA’s VP of research and economics, Michael Fratantoni. “Purchase activity increased off of a low base, returning to levels of one month ago, but remains weak by historical standards.”

(Graphic credit: BankRate)

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