Thursday, January 12, 2012

Mortgage Rates Fall to New Historic Lows and Help Boost Nov. Miami-Area Home Sales to 5-Year High

Mortgage rates fell again this week, and 30-year fixed rates (3.89%), 15-year fixed-rates (3.16%) and one-year ARMs (2.76%) are all at their lowest levels in history (see chart above).

Related:  "Miami-area homes sold at the fastest pace for a November in five years as lower prices and mortgage rates continued to drive robust demand from investors and vacation-home buyers - both foreign and domestic."

MP: It's a sign that market forces are working - lower prices and lower mortgages rates stimulate demand for home sales in Miami.


At 1/12/2012 5:43 PM, Blogger Benjamin Cole said...

But, but, but inflation!!! Inflation!!! We have to live ascetic lives in order to bring about zero inflation!!!!

Seems like we have obtained near deflation. At extraordinary cost to USA business and workers.

Just so some nominal numbers don't quiver too much.

It is sad when Theo-Monetarists control the money supply. They worship money, not production.

At 1/12/2012 7:18 PM, Blogger Craig Howard said...

I suppose that, to some extent, the low mortgage rates are due to market forces, but the Fed's lower-than-low borrowing rates certainly mitigate those of the evil markets. I can't help but wonder what the market rate of interest would be absent the Fed's meddling. I suspect it would lie somewhere due north.

At 1/12/2012 7:59 PM, Blogger Benjamin Cole said...

Rates are even lower in Japan---perhaps our future is there.

The Fed has been fighting inflation during the Great Recession.

At 1/13/2012 2:09 PM, Blogger Paul said...

Housing is really starting to heat up in Phoenix, nothing like the crazy price spikes of a few years ago, but homes are selling quickly if the price is right.

At 1/13/2012 11:24 PM, Blogger Belmont said...

FHA loan program will help those homeowners who are presently in foreclosure, close to foreclosure or those who have high interest rate mortgage loans like those called sub-prime loans. FHA Nashville has proven very helpful in all conditions.

FHA Murfreesboro

At 1/13/2012 11:33 PM, Blogger bob wright said...

Meanwhile, the President of the Detroit City Council owns a condo in the city of Detroit for which he paid $385,000 in 2005 while the condo next door recently sold for $80,000. An astonishing 80% loss.

The Council President is considering abandoning the condo and letting the bank foreclose.

At 1/17/2012 1:44 AM, Blogger Unknown said...

FHA Nashville has helped gain the financial independence that comes with having a home. It is Federal Housing Authority which is actually a division of the department of Housing and Urban Development.

FHA Nashville


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