Good news, mortgage rates down, housing starts down
Good news for borrowers as mortgage rates continue down, I noticed the 30 year fixed quoted last week at 5.5% down to 5.375% this week. Courtesy of MarketWatch, here is what Freddie Mac said about rates.
On the housing front, bad news is good news. MarketWatch reports that housing starts plunge 14% to a 16 year low. And yes, believe it or not, that is good news and here's why.
"The gruesome figures show builders are cutting back on production at a furious pace to try to work off a large backload of unsold homes. The bad news is that housing is still contracting; the good news is that the sooner builders stop adding supply to overbuilt markets, the sooner the housing market can recover." (emphasis added)
Read the complete story.