According to Freddie Mac, “This week was relatively light on the number of economic data releases, which painted a mixed picture regarding the current state of the economy. On a positive note, labor productivity rose higher than market forecasts in the fourth quarter of 2007 while gains in labor costs slowed. However, pending existing home sales fell for the second month in December, indicating further weakness in home sales for January and February.
“These historically low mortgage rates and declining house prices contributed to the highest housing affordability in December since March 2005, according to the National Association of Realtors®. However, with banks continuing to tighten lending standards, fewer families will likely have an opportunity to take advantage of these factors.” What to Look for Next Week January’s Consumer Price Index will be the highlight of the holiday-shortened week. If headline inflation is higher than expected, mortgage rates will likely trend even further upward. Short-Term Rate Outlook Stable to Slightly Higher Tools to Help Your Buyers & Sellers Rate Protection from Coldwell Banker Mortgage can provide that win-win situation for your clients! Whether rates go up or down, with Pre-Purchase Rate Protection, it doesn’t matter! Protect your buyers’ purchasing power by offering them the ability to cap their interest rate for up to 90 days at no cost while still offering a “float down” option to take advantage of possible rate improvements. Call me to learn more!
