Market Impact On Housing
“God loves a loan officer but doesn’t necessarily love a realtor”
One benefit from the stock market collapse that occurred last week is lower mortgage rates. According to the Mortgage Bankers Association, mortgage applications climbed 11.3% last week because of falling Treasury rates.
The Collingwood Group Chairman, Tim Rood, joined Neil Cavuto on Fox Business Network’s Cavuto Coast-To-Coast today to discuss the long term implications of the Federal Funds rates on the mortgage market. “While low rates drive refinances they have an inverse relationship with home purchases due to the macro economics driving rate up and down.”
Rood also told Cavuto, “I don’t see rates going up until December, And just because the Fed Funds rate goes up doesn’t mean that long term interest rates are going to go up… There isn’t enough global confidence to drive rates up.”