December 23, 2008
December 23, 2008 by admin
The news out of the housing sector sent stocks lower in trading on Tuesday. Existing home sales for the month of November dropped by over eight percent for the month. Home prices have declined by over 13% as home foreclosures continue to erode home values. The news sent the stock market lower as investors continue to deal with reports on a struggling U.S. economy. The market had little reaction to a revised Q-3 GDP report that was in line with expectations.
Home mortgage rates continue to be extremely attractive, and by all accounts consumers are refinancing into the low fixed rates at a rapid pace. There is a concern that the low rates may not be enough to bring home buyers into the market, as the free fall in home prices leaves many buyers on the sidelines as they hold out for even better home bargains. Mortgage lenders have reported surging applications on refinances, but little movement on applications for purchase mortgages.