MORTGAGE REAL ESTATE REPORT
Mortgage Interest Rate Report
Last Updated: 2/4/2008
Mortgage Rate News
The end of the year brought with it another decline in the national average commitment rate for a 30-year, fixed-rate, conventional mortgage. In December, the interest rate fell to 6.10 percent, down from November’s rate of 6.21 percent. The rate from a year earlier was 6.14, so the market is still offering better rates against the prior year.
Analysis
Historically low rates, dropping prices, so why isn’t everyone buying?
Another month, another drop in the numbers. Realtors and home sellers alike are wondering what they have to do to get a buyer around here! Unfortunately, the market seems to be at a standstill between buyers who just can’t get qualified and buyers who are afraid to make a purchase because numbers are sure to continue to drop.
And now, with all this talk about an upcoming recession, people are frozen in place, unsure of what to do next. Even still, in certain markets, like San Antonio and Sarasota, home sales seem to be doing better than others, so it’s not an all-encompassing problem.
Just as analysts had predicted, the consumer confidence level noticed a slight increase in the month of December to reach a level of 90.6. Experts are signaling this as a starting point and they expect the level of consumer confidence to slowly escalate through the winter and into spring. Forecasts are for an average level of 92.3 over the next few months.
In the month of December, the employment indicator signaled a huge decline in available jobs, much fewer than what were anticipated. With only 18,000 new jobs available, the threat of a recession looms ever larger. How this affects the consumer confidence level heading into the New Year remains to be seen.
Predictions
End of the year witnessed further declines in the national mortgage interest rate. Experts agree that the rate still hasn’t bottomed out and that further drops loom.
