CHICAGO (MarketWatch) -- Weak economic conditions, as borne out by recent indicators, caused mortgage rates to drop this week, with the 30-year fixed-rate mortgage falling to its lowest level since September 2005, Freddie Mac reported Thursday.
The recent movement in rates has inspired more homeowners to refinance in recent weeks, said Frank Nothaft, chief economist at McLean, Va.-based Freddie Mac.
The rate on a 30-year mortgage averaged 5.87%, down from 6.07% last week, according to Freddie Mac's weekly survey. The 30-year's average rate was 6.21% a year ago.
The 15-year fixed-rate mortgage averaged 5.43%, down from 5.68% last week and from 5.96% a year ago.
10 January 2008
New Home Construction Market to Begin Slow Recovery in Mid-2008
SACRAMENTO – California’s beleaguered new-home market should begin a modest recovery this year, but won’t really rebound until public policy reforms to streamline the building process and promote construction of more-affordable new homes, the California Building Industry Association (CBIA) announced today.
In 2008, CBIA Chief Economist Alan Nevin predicts that the market will demonstrate a slow growth.
“By mid-2008 the housing industry will show signs of growth,” Nevin said during a media conference call today. “Continued population growth, a reduction of existing inventory and a return to normalcy in the credit markets are a recipe for a more positive 2008. As a result, we are projecting a slight increase in new home sales over last year.”
Specifically Nevin predicts that new-home sales will increase in the second half of 2008, leading to the construction of more than 80,000 new single-family homes this year, up from about 70,000 last year. He also expects production of condominiums, apartments and townhomes to increase to about 46,700, compared to about 44,000 in 2007.
In 2008, CBIA Chief Economist Alan Nevin predicts that the market will demonstrate a slow growth.
“By mid-2008 the housing industry will show signs of growth,” Nevin said during a media conference call today. “Continued population growth, a reduction of existing inventory and a return to normalcy in the credit markets are a recipe for a more positive 2008. As a result, we are projecting a slight increase in new home sales over last year.”
Specifically Nevin predicts that new-home sales will increase in the second half of 2008, leading to the construction of more than 80,000 new single-family homes this year, up from about 70,000 last year. He also expects production of condominiums, apartments and townhomes to increase to about 46,700, compared to about 44,000 in 2007.
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