Amy Cutts
Amy Cutts
bonds caused employment extension fall health interest investors last mortgage rates report treasury weak worried
Last Friday's unexpectedly weak employment report caused interest rates on long-term Treasury bonds and, by extension mortgage rates, to fall as investors worried about the health of the U.S. economy.
ahead bit bond causing continued correction eight fell few financial markets mortgage past quickly rates rise saw time volatility week yields
The bond markets got a little ahead of themselves, causing yields to rise too quickly over the past few weeks. This week saw a bit of a correction and mortgage rates fell for the first time in eight weeks. Continued volatility in financial markets, however, will keep rates teetering up and down for some time to come.
came expecting figures financial growth job markets order taken thousand
Expecting job growth on the order of about 150,000 in December, financial markets were taken aback, to say the least, when those figures came in at only a thousand new jobs.
combined consumer decline domestic figures gross housing led lower mortgage price producer rates recently released
Lower figures for the recently released producer price index and consumer price index and lower, but still strong, gross domestic product, combined with the seasonal slowdown in the housing market, led to another decline in mortgage rates this week.
slowing
This is a slowing down to what I think of as good, sustainable levels.
alan chairman cool effective efforts evidence federal greenspan reserve
That's a big slowing. It's evidence that the Federal Reserve and Fed Chairman Alan Greenspan are being effective in their efforts to cool the economy.
buying decision expectation house houses housing increasing people prices purchasing seen true ways wealth
Part of the purchasing decision for buying a house is an expectation of what housing prices are going to do in the future. It's true that houses are getting more and more expensive, but people are increasing their wealth in ways we haven't seen in a while.
afford expensive homes impact interest loans longer option payment products ways
Interest-only and option payment loans had been ways to afford homes in expensive markets. Now even, these products will no longer be attractive. That will impact affordability.
bit enthusiasm housing starting
We are starting to see a little bit of a slowdown in the enthusiasm for housing as an investment.
below currently housing mortgage rates six
The onset of 2005 bodes well for the housing industry. Long-term mortgage rates are currently below six percent.