Slight Increase In Mortgage Rates
The Contra Costa Times reported on the slight increase in mortgage rates. This shouldn’t really have much impact since the 6% range is still extremely low. Buyers are starting to realize that with the combination of low rates and much lower home prices now is a great time to start to bargain hunt.
Rates on 30-year mortgages increased for the first time in about a month, rising slightly to an average of 6.12 percent this week from 6.11 percent a week ago. However, they remain close to the 2006 low of 6.10 percent reached during the week ending Jan. 19.
Freddie Mac chief economist Frank Nothaft says the small change was the result of mixed signals from recent data on job growth, retail sales, wage growth, and consumer sentiment. The Federal Reserve held interest rates steady once again this week; and many experts believe the central bank will continue to do so through May or June of next year, with hopes of achieving a soft landing.
Nothaft says he does not think a moderate rise in mortgage rates in the months to come would prevent a rebound in the housing market.
Source: Contra Costa Times (Calif.), Martin Crutsinger (12/15/06)
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