Mortgage Rates Are Still Declining
Mortgage rates nationwide continue to decline, a reflection of a variety of signals about the economy in general and the housing market in particular. Overall, interest rates are still at historic lows with the recession still holding a firm grip on overall economic activity. For its part the Federal Reserve Bank is also engineering rates lower providing nearly unlimited liquidity at the front end of the curve while buying treasury securities out along the rest of the curve as a part of its quantitative easing program. The Fed has engaged in two such programs to keep long term interest rates low and there is talk that another round of easing is in the offing.
The action by the U.S. central bank along with a slower economy is keeping structural rates lower while the problems still facing the housing market keeps prices constant downward pressure. Experts cite a lack of demand for new and existing homes, a still overwhelming number of foreclosures coming onto the market, and a glut of supply for keeping home prices and mortgage rates at historically low levels.
A few of the more depressed regions in the U.S. where housing is still the biggest drag on the local economy can be found in Las Vegas, Florida, and Arizona. Potential home buyers will find big bargains in these markets with a Florida Home Mortgage and the price of a home at levels not seen since the 1930’s. Of course you have to have the available cash to take advantage of this market because if you need to sell your home first, the wait to find a buyer could be a lot longer than you think.
