Home sales are up 21% from last year but last year’s number was artificially low.
Buyers are less likely to buy a home right now because consumer confidence is weak. Buying a home is a major purchase and without confidence in the economy, fewer people are pulling this trigger.
There’s a huge drop-off in sales in the Western United States. Down 12.6%. Lenders are dropping mortgage lending limits. They won’t lend jumbo loans any more because Fannie and Freddie are buying such mortgages.
An uptick in mortgage refinancing is not putting enough money in consumer pockets to make a big difference in the economy.
Watching CNBC right now at 10:40 am. There is bad news out there, but the rates coming down is making a small impact.
If people don’t have a job, they can’t refinance and they can’t get a mortgage.
The lower mortgage rates go, the more refinancing and mortgage applications.
Fannie and Freddie have tough lending standards and most people, most homeowners, who want to refinance can not because their homes are underwater or their income is not secure.
Most homeowners have home equity and good credit. But the mortgage interest rates weren’t low enough. Now there’s special low financing.
The refis over the past two years have not pumped much money into the economy. That could be changing.