Interest Rate Update for Frederick County Buyers ~ October 2011
Mortgage Interest Rates are staying low, historically low, hovering in the low 4's. Here are some other highlights in the economic news:
- In October the homebuilder
index jumped four points to 18 – the highest posting in nearly 18
months.
- One recurring theme over the past year has been that the laws of
supply and demand are infallible: lower prices drive demand, which, in
turn, lower supply and help prices recover.
- You can most clearly see this law of supply and demand at work in the
hardest hit home markets. Data shows that Florida has seen
significant reductions in inventories as well as rising median list
prices. In fact, Miami had the largest inventory reduction
year-over-year at 49.3 percent, while the median list price in Fort
Myers-Cape Coral, Fla. , was up 34.4 percent – the highest increase in
the nation.
- We are starting to see some inflation, which traditionally, signifies higher mortgage rates around the corner. Overall producer prices are up nearly 7 percent this year, while the
core rate, which excludes energy and food, is up 2.5 percent. On the
consumer side, overall prices are up 3.9 percent, while core prices are
up 2 percent.
See Today's interest rates with Wells Fargo.
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The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate – 301-831-8232
email us: isell4u2@msn.com
Text Us: 301-401-5119