What Did Interest Rates Do Last Week?
(Re-printed with permission by Marie Funston, Sr. Mortgage Advisor)
Interest rates inched down last week and remained considerably lower than last year.
Highlight of Last Week’s Major Economic Reports
Even though it may not feel like it yet, the “technical” recovery is unofficially underway, as the first glimpse of 3rd quarter GDP showed an astounding 3.5% expansion in the economy’s output. The economy showed significant growth for the first time in over a year, which should help to provide a psychological boost for consumers and businesses.
The housing market, meanwhile, is still trying to gain some traction; however, the uncertainty surrounding the extension of the tax credit seems to have sidelined potential buyers who are waiting to find out what Congress decides. According to Freddie Mac, “Economic data released this week offered mixed signals as to the current state of the housing market. For example, [the National Association of Realtors reported that] total existing home sales jumped 9.4% to an annualized rate of 5.57 million homes in September, the strongest pace since July 2007. However, new home sales unexpectedly fell 3.6% to 402,000 houses, the weakest since June of this year (based on figures from the Department of Commerce). Nonetheless, stronger housing demand has lowered the inventory of unsold existing homes in September to the lowest since January of this year and for new homes the lowest since November 1982, which should help stabilize falling house prices.”
Marie Funston | Sr. Mortgage Advisor | (512) 750-7270
www.mariefunston.com
9442 N Capital of Texas Hwy., Suite 1-600
Austin, TX 78759
Fax: (512) 343-1224
(Based on Freddie Mac weekly average survey)
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