The week ended with the terrific news that existing home sales shot up 9.4% in September to a 5.57 million annual rate. This was almost twice the increase the consensus expected and a nice boost coming off the slight drop we saw in August. Best of all, the inventory is now down to a 7.8 month supply, getting us closer and closer to the 6 month level of a normal housing market. The Mortgage Bankers Association reported that for 30 year fixed rate mortgages, the average contract interest rate was 5.07% with 1.13 points (including the origination fee) for 80% loan to value ratio loans to borrowers with good credit. First time home buyers have just 5 weeks to get in on these still great rates AND the $8000.00 credit set to go away at the end of November.
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