Ah, economics — where anyone can make a case for anything affecting everything.
Witness these two headlines (and accompanying stories):
From Dan Green, we have “Pending Home Sales Index : With Low Mortgage Rates, Sales Rising“
With 2012 half-over, home sales remain brisk. From San Francisco, California; to Phoenix, Arizona; to Miami, Florida, low mortgage rates and rising prices are helping to get buyers off the fence and into new homes.
While DS News reports, “Capital Economics: Low Mortgage Rates Aren’t Affecting Demand“
In recent months, data from the Mortgage Bankers Association, Freddie Mac, Bankrate, and other firms has shown mortgage rates steadily falling, hitting new lows week after week in some measures. However, Capital Economics contends that there is actually little evidence to suggest that this activity is translating into heavier demand.
So which is true?