Mortgage Rates are Falling

by Nancy Woodward

Long term mortgage rates are now falling. This is the first time since 2005 the've been at Monday's level.

Quicken Loans Chief Economist, says mortgage rates are benefitting form the volatility of the stocks when compared to the security of bonds. When the stock market is in a period of fluctation, investors tend to look for safer places to put their funds - like Treasury Bonds.

This could mean more sales of homes as consumers are more likely to find financing at lower rates.

Builders have been giving away a lot of goodies - like granite countertops, no cost closings, price cuts and more in an effort to improve their sales positions. Many large firms believe they need to cut costs to prevent more sales of foreclosed homes.

The market is in a constant fluctation stage - I prefer to wait a bit before jumping in.

Housing and Credit Markets affect each other

by nancy Woodward

The stock market is sliding downward. The sad state of the banking sector and less than great hews from home builders has pushed the stock market further down the hill.

Economists fear the results of the collapsing housing market and credit problems will reduce economic growth in the final quarter of the year.

This can also cause a decline in the first quarter of 2008. They are hoping that consumers do not cut back sharply on spending.

The decline in housing combined with declining home values and credit reductions could make consumers wary of spending future dollars.