By: Dennis Norman
Four days ago I wrote a post stating I did not think low interest rates will prove to be long-term fix to the housing market and in fact nothing more than short-term “life support”. Today CNNMoney.Com published an article which stated “Unfortunately, the low interest rates have not spurred much of an increase in the number of new loans made to home buyers. According to the Mortgage Bankers Association, nearly 83% of all mortgage applications recorded last week were to refinance existing loans rather than to buy a home, indicating that low interest rates have so far failed to free up the frozen housing market.”
Clearly lower interest rates will not fix our housing problem however lower prices will help. As the economy continues to stuggle and we move deeper and deeper into a recession there are additional challenges as well but bringing prices back in line with real value will go a long way toward the cure in my opinion.
It’s 9:30 pm on New Years eve….I am going to stop thinking about real estate and spend some time celebrating the new year with my family and friends (I snuck away long enough to do this post). I wish you and your family a happy, healthy and blessed 2009!
Related posts:
- Home mortgage interest rates continue to fall….Life support for the ailing real estate market but not the cure
- Mortgage Interest Rates Increase after Fed Pulls out of Market
- Feds pulling support of mortgage market- will interest rates increase?
- Mortgage Interest Rates Increase Again this Week
- After almost hitting 6% interest rates retreat