Saturday, November 26, 2011

Cheap Mortgages Aren't Helping Housing Market

Despite near-record lows for interest rates and a glut of houses available for sale, Americans simply are not lining up to purchase new or used homes.

According to Freddie Mac (FMCC) average mortgage rates remained below 4 percent for the fourth consecutive week. The current rate, which hovers around 3.98 percent, should be a positive factor in driving the housing market.

People can’t get refinanced if they’re upside down on their mortgage. That’s why the news that we’re near record-lows for interest rates isn’t going to do much for housing sales.

Read the rest of the article at Forbes

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