Couples of week back Fed decided to hold hike in intereste rate. This means, they are not doing right now but they will in furture (based on data). This make high interest rate hang on for longer time than if they decided to hike.
If the continue to ecided hold for next meeting, then for sure it will come in future, and based on that the treasury will declined and will rise the mortage rate.
Today, we see the report that wholesale price declined. So they assume they will still hold int rate. But since this int rate low is still low, they have to hike at some point.
Net.Net. Due to this, the mortgage rate will hold higher for long time, this is not good for those you purchased home in last 3 years, because they need to refinance.
According to today news says that Home Sales Slow in Spring With 28 States and D.C. Suffering Outright Declines. The five biggest declines this spring compared to the April-June period of 2005 were Arizona, down 26.9 percent; Florida, down 26.7 percent; California, down 25.3 percent; Virginia, down 23.9 percent, and Nevada, down 23.5 percent.
Be careful.
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