MORTGAGE RATES STILL UNDER 5% !

Mortgage rates have continued to stay in a narrow range of 4.5-4.75%. Home purchases are picking up and refinances have continued at a steady pace as homeowners take advantage of these excellent low rates. The fed is continuing to hold down long term rates by purchasing treasury bonds. My forecast remains unchanged : rates should stay in this range for the next few weeks to months. I am anticipating the stock market to retreat in the late summer to fall, at which time, bonds should continue a more vigorous rally which will lead to lower rates.

Consumer sentiment appears to be improving in the housing market. Going forward,the overall theme to note is that lower rates and the fed's support of all lending institutions should help spur mortgage lending and be supportive of the real estate market. There are incentives and new products available to encourage home buying. New products are also available for REO homes.
Realtors should be seeing more activity in the resale market as low rates and low prices create opportunities.