Excerpts from newsletter from HSH Associates as of 8/25/06:
This week saw a minor decline in fixed mortgage interest rates, with the benchmark 30-year FRM easing six basis points (.06%). Sales of both new and existing homes continue to decline, as the combination of prices and interest rates continue to crimp affordability at at time of slowing economic growth. It’s likely that sales will level off at very good levels (historically speaking). The dip in rates over the past six weeks was a welcome relief from the steady tick-tick-tick of increases for much of this year. Summer is quickly coming to a close, and as vacations end and business resumes in September, new patterns for the fall will begin to emerge.
These rates are almost a half percentage rate lower than those at 7/8/06, and are now at levels last seen at the end of March, 2006.