Hi,
A series of economic factors have succeeded in pushing down mortgage rates still further. The average 30-year FRM declined by six basis points to close at 6.27%. The average 5/1 ARM also declined to close at 6.03%. Movements of the Shanghai stock index and delinquencies in sub prime mortgages have clearly left their mark on mortgage rates.
Measures such as more stringent regulations for qualifying borrowers to mortgage loans are bound to affect the housing sector in an adverse manner. This can be bad news for an industry that is still trying to regain its equilibrium.
Surveys indicate that sale of used homes fared better than that of new homes. Slower economic growth and weaker employment levels can help in containing inflation. But if the economy weakens it can only add to credit-related problems.
It will take some more time to gauge whether the problems of sub prime mortgages have seeped into Alt-A mortgages and the broader mortgage market, and understand its true impact on mortgage rates.
Cheers
Rob Thomos [specool]
[email protected]
Mortgage Loan Expo
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