Housing Stats look better

Housing Data Exceeds Expectations
Strong manufacturing and housing sector data contributed to a rally in the stock market this week. This would ordinarily push mortgage rates higher, but the strong economic news was offset by tame PPI inflation data and a significant increase in Fed purchases of mortgage-backed securities (MBS), leading to a small decline in mortgage rates during the week.
The national housing market data released this week was positive. July Existing Home Sales rose 7% from June, to the highest level since August 2007, and were 5% higher than one year ago. This marked the fourth straight monthly increase. Taking advantage of the $8,000 tax credit, first-time homebuyers accounted for 30% of all transactions. Inventories of unsold homes held steady from June at a 9.4-month supply.
In addition, the National Association of Home Builders (NAHB) Housing Market index rose to the highest level since June 2008, indicating an improvement in home builder confidence. The NAHB also reported that housing affordability during the second quarter of 2009 remained near record levels. The improvement in home builder confidence was reflected in a fifth consecutive month of increased single-family housing starts in July. High affordability, low interest rates, and the first-time homebuyer tax credit combined to improve sentiment and stimulate housing market activity


The last 2 days due to this have made the market very volatile. We have been dealing with multiple mid day rate changes. I feel that when the economy does turn around we will see rates higher. No more 4s. They will be gone. If you are on the fence I would get off soon. Please call me if you need a rate quote. I want to help you get the best rate possible now. 888-921-0030 x111 or email me at andrea@capmortcorp.com