Mortage Best Choice For Good Live

Mortgage Best Choice For Good Live, Mortgage rates continued to rise for the past two weeks as good news about the housing markets continues to trickle in. This week new home sales were reported up with the biggest single month increase in 8 years.

Yesterday, Standard and Poor’s Schiller Index showed that home prices appreciated in eight cities and in parts of 38 states. That is great news for the real estate sector which many believe is turning the corner on this whole mess. The overall picture was described as “flat” or “a plateau” but to me that sounds a lot better than “falling”.

Not all the news has been good this week. Poor consumer confidence and lower than expected orders for durable goods are two indicators published this week that remind us that our economy has a long way to go. Durable goods orders fell 2.5% in June, five times worse than expected. If you look at the details, the transportation sector was the key component that led to the bad news. Transportation orders dropped 12.8% mostly due to a huge drop in orders for commercial planes. Remember, as a rule of thumb, poor news indicates less demand which results in lower mortgage rates to attract customers.

Mortgage applications have been off for two weeks in a row due to the rising mortgage rates. The split between purchases and refinances is approximately 50/50. As described in the Home Affordable legislation that came out in April, we need the continuing stimulus of refinances across the country to help provide an injection of spending. Much better than a one time government hand out, if a homeowner is able to lower his mortgage payment $250 each and every month, that is a steady flow of money that can be spent elsewhere.

The mortgage rates on the Home Affordable DU Refi Plus, as it’s called, have jumped in the passed two weeks but still is very attractive for homeowners who obtained their mortgage financing in the spring and summers of 2006 & 2007 and at the end of 2008. To qualify you must be an existing Fannie Mae or Freddie Mac customer with your mortgage paid on time.

The remainder of the week will be very interesting to watch with regard to mortgage rates. Today we have the “beige book” numbers released which are an interesting set of economic indicators published by the government. Tomorrow, unemployment figures will be published and Friday Gross Domestic Product figures will be published. I look for a slight improvement in mortgage rates in the next few days as some of these numbers, outside of the real estate sector, will be negative and that this process of recovering our economy is a long and slow moving one.