Happy Friday all . . .
As I have a quick break in the action here, I wanted to update you all with a quick yet informative update. OK, today’s news; new home sales (SFR-Single-Family Residences), fell .9%, however, the previous months revision upward, painted a picture that could appear to many economists that the slumping housing market may have found a bottom. The supply of new homes available for sale, slid to a record low of $151,000 — or 5.6% — the lowest amount of inventory since 2006!
This is promising for the economy. While this is encouraging news, the pace of new home sales is still extremely sluggish. Don’t think of this as bad news, think of it as good news as far as mortgage rates are concerned, because this will help to support the low level of mortgage rates. Sluggish economy equals low rates.
Many “experts” are still anticipating a period starting in April, lasting through July 4th holiday, of slumping stock prices. Only time will tell on this scenario, but I don’t need to tell you what that means for mortgage rates. Last time I checked, investors don’t put their capital into depreciating assets, they go where the money is. Most strategists say that bonds and mortgage backed securities is where the money will be at this time.
Enough of that for now, onto the rates:
30-yr. Fixed Rates at 20% down for SFR is at 5.0-5.125%
30-yr. Fixed Rates at 25% down for 2-4 Units at 4.875%
Everyone have a great weekend, rest up, and get ready for another busy week!
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