West Chester, PA (PRWEB) September 21, 2007
The ShopRate.com mortgage market update provides data points and perspectives into the overall health of the mortgage market.
Rates on 30 year mortgages rose slightly this week, and the fixed rate averaged 6.46 percent, up from 6.45 percent last week. That percentage recorded last week was the lowest since the week of May 31, when 30 year mortgages averaged 6.42 percent. The situation one year ago was only slightly better, with rates hovering at 6.47 percent.
The lack of movement in the current market relating to 30 year mortgage rates is due to the fact that market expectations were so close to the actual data.
On Monday former Federal Reserve Chairman Alan Greenspan spoke of a "somewhat less than 50 percent" chance of a recession. Greenspan, who has been taking an active role in promoting his new book The Age of Turbulence, added that, "The greatest risk is indeed in the house price issue, because we have a very large overhang of essentially completed, unsold new homes which are deteriorating and which the builders will increasingly try to press on the marketplace, and that tends obviously to put pressure on prices."
Greenspan did also discuss a scenario that would make this situation avoidable. That development was more likely, Greenspan suggested, if a "significant decline in housing starts which enables builders to clean out their inventories fairly quickly, then we're in fairly good shape". Also on Monday, in an interview with Reuters, Greenspan commented that a double-digit fall in housing prices was, "a possibility not a probability" and one that would possibly jump-start sales of properties.
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