Monday, August 22, 2011

Mortgage Rates are low, but it's NOT inducing home buying

A major problem, of course, is that current low interest rates are a result of falling confidence in the economic outlook. It's cheaper than ever to borrow, but that's because no one wants to borrow. Still, while interest rates are at historic lows now, it's not as though they were sky-high earlier in the year or last year, when the economic picture looked a little brighter. And home sales were also at historically low levels during those periods.
Obviously the dynamic of the bust has an impact. Some markets remain glutted. Buyers may be reluctant to move while it seems as though prices will continue to fall. Still, it's remarkable how depressed housing markets have been for this long, despite ridiculously low interest rates
Read it all

1 comment:

  1. There are several reasons for this constant change in mortgage rates . If you are looking for mortgage loans in the market you will soon find various mortgage news and, if you have not found one yet.
    current mortgage rates