Less-than-stellar housing news from last week and the Fed’s decision to further cut their bond-buying program in April are weighing on mortgage rates as we start the week.
February’s Existing Home Sales report showed a 7 percent decline from a year ago nationwide.
However, KCRAR reports that local existing home sales rose 2 percent last month, compared to Feb., 2013, which is very good news.
Last week’s Housing Starts report also showed a decline, but Building Permits – a sign of future construction activity – surged by nearly 8 percent.
Bottom Line for Mortgages:
The Fed has spoken, and mortgage rates were negatively impacted as a result. They are continuing with their scheduled “tapering” of mortgage bond purchases, which is causing rates to rise.