Thursday, June 4, 2009
Housing Market Speed Bump
The above graphs track the Freddie Mac Survey Reference Rate for 30 year (fixed rate) mortgages. The 2nd graph only goes back 1 year, so it is clear that borrowing has become decidedly more expensive for prospective homeowners. Fears of inflation have pushed longer term interest rates higher and, ironically, may serve to exacerbate the slowdown. If that is the case, inflation may very well be pushed even further off.