Real Estate Market Energized By Lower Mortgage Rates

Rates on the 30-year mortgage were down this week, according to
MarketWatch. Rates dropper just slightly, from 5.8% to 5.78%. This was the
fourth straight week in a row of lower mortgage rates. Further, mortgage
rates are still lower than this time in 2004, when they were at 6.01%.



Freddie Mac's chief economist, Frank Nothaft, said that the decline was a
reflection of concern about the dip in consumer confidence and in orders
for durable goods. The lower mortgage rates may also indicate that
inflation is ceasing to be a problem, and that the Federal Reserve Board
might not be so eager to raise interest rates.



As might be expected, there was a strong reaction to the lowered rates.
The Mortgage Bankers Association witnessed an increase in its weekly
applications index of 6% (seasonally adjusted).