Will Low Interest Rates Boost Demand For Housing?

So far, all indications are that consumers will continue to shun debt.

Over the past three years, American consumers have steadily reduced their debt.

When people fear for their jobs, or don’t have jobs, or enough employment, they’re unlikely to spend, including on housing.

Lenders have dramatically raised standards over the past four years in response to the housing crash.

The New York Times reports:

In housing, consumers have already shown a lackluster response to low rates. Applications for new mortgages have slowed this year to a 10-year low, according to the Mortgage Bankers Association. Sales of furniture and furnishings remain 22 percent below their prerecession peak, according to MasterCard Advisors SpendingPulse, a research service.

Credit card rates have actually gone up slightly in the last year. The one bright spot in lending is the number of auto loans, which is up from last year. But some economists say that confidence among car buyers is hitting new lows.

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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