Mortgage rates, market activity both lower

Mortgage rates scored another all-time low this week, but even so, the volume of home sales is dropping as what might be described as a post-homebuyer tax credit malaise seems to have set in nationwide.

  • 30 year fixed rate: 4.58%
  • 15 year fixed rate: 4.04%

In spite of the low rates, buyers appear to be firmly fixed on the sidelines.

Despite the cheap credit, an index of applications for loans to finance home purchases fell 3.3% last week from the week before, the Mortgage Bankers Assn. said Wednesday.

This, when considered together with continuing high unemployment rates, is causing experts to predict another dip for home prices.

“We’ve exhausted what the government can do for the housing market,” said [George Mason University economist Anthony] Sanders, who predicts another decline in home prices. “The tax credits were the last hurrah of the stimulus.”

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3 Responses to Mortgage rates, market activity both lower

  1. Ben, how is the unemployment rate in VA? Housing markets in states like CA, FL, and MI are having miserable RE markets due to incredibly high unemployment (MI at a whooping 13%).

  2. So long the unemployment rates is high, are people scared to buy new homes, its going hand in hand and at the same time are often the mortgage rate low.

  3. Alex, Virginia’s unemployment rate is high relative to its historical average, but is below the current national average. Latest Virginia Employment Commission numbers put Virginia’s unemployment rate at 7.1%.

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