Mortgage Rates Rally on Weak Economic Data

Mortgage rates began the week on a bad note but reversed course today following a weak read on the housing sector. The National Association of Realtors this morning released Existing Home Sales data for July. This data totals the number of previously owned homes in which a sale closed during the prior month. Since the expiration of the home buyer tax credit, home sales have fallen significantly and many economists have lowered their economic forecasts. This report was horrible. There is no other way to describe it… Existing Home sales fell by a record 27.2% in July to an annualized pace of only 3.83 million home sales. This was far short of expectations. Making matters worse, the June report was revised lower, from 5.37million to 5.26 million. The report also indicated that supply of homes…(read more)

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