There are a couple of important headlines I thought relevant here.
Pending Homes Sales reached a yearly high in August......
-nothing we didn't know locally, but this bears out the stronger sales in September, at least. It also talks a bit about mortgage rates coming down as a result of the rush to US Treasuries. Its a simple breakdown, but actually helpful in explaining the situation. This is the article from CNBC
Mortgage applications rise....
-I don't know if these applications are getting approved, but it does show a certain segment of the population is interested in buying a home. This is a good indicator that we at least have a floor in the housing market. The prices have come down enough to bring people in to start the process, despite the horriffic news and daunting task of obtaining financing.
Feds Cut Rates 1/2 point
-This seems to have stabilized the market a bit for today, but it is not nearly as much as the street was clamoring for. It might be that it was enough though. I am not sure if continually cutting rates is the right way forward either. This one was necessary.
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