Unemployment Rises As Mortgage Interest Rates Drop

This is a predictable relationship. As unemployment rises, there’s less demand in general and for homes in particular. With falling demand, prices as measured in mortgage interest rates, will tend to fall, all things being equal.

So even though mortgage interest rates are near all-time lows, there’s simply little demand in the system for mortgages, either new mortgages or mortgage refinancing.

The benchmark 30-year fixed-rate mortgage fell 10 basis points this week, to 4.69 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week’s survey had an average total of 0.36 discount and origination points. One year ago, the mortgage index was 4.77%; four weeks ago, it was 4.71%.

Read more: http://www.foxbusiness.com/personal-finance/2011/07/14/mortgage-rates-fall-to-labor-pains/#ixzz1S8R4x54a

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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