Declining Mortgage Rates

[Emily Smith]

:welcome: Hi,

After the unexpected fall in mortgage rates, there has been no change in the average 30-year FRMs, which closed at 6.35%. Average 5/1 ARMs, on the other hand, fell by four basis points to close at 6.14%.
Progress in the housing sector has been rather uneven. Further growth will depend on depletion of existing stocks and addition to the inventory. The rate of depletion has been gradual even when housing prices are declining. This is due to the influence of unfavorable factors on housing and mortgage markets. One such factor is the consequence of borrowers defaulting on loans such as sub prime mortgages. Such influences do not have a positive effect and prevent the emergence of a clear picture on future trends.
The week that saw mortgage rates fall had also seen an increased investment in bonds, over stocks. Subsequently investments in stocks rose once again. This could also have contributed to preventing mortgage rates from falling further. The following week, however, may witness a further fall by at least a couple of basis points.

Cheers
Rob Thomos :lol: