The Sentiment of Today's Mortgage Rates

First thing we were thinking to see is that today's mortgage rates would rebound as the housing seems to be improving. However, it seems that the demand of mortgages falls despite reduced interest rates.

A story by Reuters, published in today's MSNBC reads that the mortgage applications fell last week despite the lowest mortgage rates in four months. The numbers were released by the Mortgage Bankers Association today. This shows that the housing market recovery will be slower than thought. It has been three years that the housing markets have fallen in the United States as well as in Europe.

Not only the current mortgage rates, but also the cost of borrowing money to buy a house are getting closer to record low levels. The average 30-year mortgage rates are currently at 4.95 percent nationwide. They have come down by 0.03 percent.

We looked at some tweets to get the sentiment of the online consumer community on today's mortgage rates and the fall of the application. Here is what some say. For example, Damortgage guy questions if the consumer has unrealistic expectations about the current housing market. "Rates were down last week and still mortgage apps are down. Does the consumer have unrealistic expectations?" he writes. Some others just don't know what to make of the news. They say, the current interest rates are low, refinancing rates are low, the first time home buyer credit of $8,000 dollars is nearing to an end, yet the applications for mortgages fall. Some other consumers and specialists point out that in this market they see that adjustable mortgage rates are on the rise and the fix is to get fixed loan rates, while they are at historically low leveled.

In the meanwhile Markets are looking for direction. The stock market in the United States took a sharp Southward move this morning following a starkly disappointing reading of midwestern manufacturing activity. Where will the mortgage rates go from here, remains to be seen.

Written by Armen Hareyan