According to Rismedia, the average weekly rate that borrowers were quoted for thirty year fixed rate mortgages dropped slightly last week to 5.29%.
Average Rate Average Rate
Mortgage Type Week ending 7/26/09 Week ending 7/19/09 % Change
30-year fixed 5.29% 5.31% -0.4%
15-year fixed 4.66% 4.69% -0.6%
5-1 ARM 4.23% 4.31% -1.9%
Interestingly, California rates were among the most requested across all states.
On the national front, the news that new home sales have risen has been touted as a good sign for the real estate and construction sectors. There is more talk by differing economists that the real estate market has bottomed out, and that buyers should no longer wait for housing prices to drop before making a home purchase. However, economists have sent a mixed message. While the housing numbers continue to improve slightly, unemployment and consumer confidence continue to bog down any recovery. Companies at worst are continuing to downsize and cut costs, while at best they are in a holding pattern, waiting to see when the signs of recovery become evident. The ecomonic stimuli, such as shovel ready projects, have not yet directly resulted in any measurable economic growth.
Despite this, the news that the home prices have bottomed coupled with the ticking clock of the first time homebuyers federal tax credits should motivate on the fence buyers to make a move in the upcoming weeks.
Buyers, it’s time to do stuff.
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Joe Capote 