Market Commentary

Mortgage Rates in August

We have seen softness in the housing market in recent months as resales and new home sales have fallen off a bit. Experts are saying there is a lack of inventory but that may not be the whole story.

Mortgage rates are at a six week high as the economy via the economic data being released suggests a strong peaking economic picture.  The 30 years fixed rate is 4.5% this week according to Freddie Mac’s weekly survey.

Housing’s summer season was poor so expect prices to start to weaken faster. It appears that housing has indeed topped but no one really knows if it will roll over or stay put for a while. History suggests a roll over so be prepared. Also, housing is local, different areas will act on their own local supply and demand dynamics.

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