Friday, April 29, 2005
Real Estate Market Witnesses Another Week of Lower Mortgage Rates
Rates on the 30-year mortgage fell still further this week, as reported by
MarketWatch today. Rates dropped slightly, to 5.78% from 5.8%. For four
weeks in a row this has happened. Mortgage rates are also lower than in
April of 2004, when they were at 6.01%.
Freddie Mac's Frank Nothaft felt that the declining rates indicated
concern about the consumer confidence falling. It also shows that
inflation may finally be coming under control. This may influence the
Federal Reserve Board to slow its pace of raising interest rates.
Reaction to the lowered rates was readily observable. A seasonally
adjusted increase of 6% was witnessed by the Mortgage Bankers Association
in its weekly applications index.
