Nationally... Home Sales Slow Down Slightly

NAR reported that the existing home sales were down from an annual pace of 6.72 million to 6.54 million for month of August. Home sales overall are still near historic levels but this is the second month that we see slowing in the market.

The median homes sales price was $190,100 in August. That's up 7.3 percent from August 2003 when the median price was $177,200, and basically unchanged since July's median of $190,200. June of this year is when the median home price hit a record $191,000.

Mortgage rates are still at 6 month lows even as short term mortgage rates like the prime rate have increased over the last three months because of the Fed and Mr. Greenspan. The short term rates are also still near 40 year lows and typically affect home equity loans / HELOCS.

Loan term mortgage rates have remained low as the long bond market has been hovering around 4.05% with a recent 6 month bottom of 3.98% yield yesterday. If the bonds hold their prices and the economic data continues to be weak these mortgage rates may hold stable for some time.

Thanks for Reading.
Jessie J. Beaudoin