SE Minnesota Real Estate News

We expected to see mortgage rates more affected by Friday morning’s Employment Situation report where unemployment worsened from 9.6% to 9.8% and new non-farm jobs showed weak growth. But mortgage rates, except for some minor changes in points, held steady. Still hovering in that 4.3% to 4.75% range for 30yr fixed mortgages.

There was even a glimmer of positive news in the housing market this week that pending existing home sales were up. Conventional wisdom would say this is a leading indicator pointing at a potential turn around in home purchases. Home prices fell three months in a row from July through September. Refinance mortgage applications were down last week as interest rates continued to increase. Some refinancing continued to persist as if borrowers were trying to get in at the last moment. The Mortgage Brokers Association anticipates very low levels of refinancing as they project increasing mortgage rates through the end of next year. - Jim Anderson