The fifteen year FRM fell eleven basis points from last week to 6.58 percent with an average 1.0 point. The spread between the fifteen and thirty year, which last week stood at forty three basis points, widened to 45 basis points this week. A year ago, fixed rates were about 125 basis points worse than this week. In another home price report issued earlier this week by the Office of Federal Housing Enterprise Oversight, the New England region was reported as the most highly appreciating region, up 13.2 percent from last year. As refinances fell from last week, purchase activity actually rose by 6.2 percent.
Lower confidence translates into slower consumer spending.
Less spending means less growth, and less growth means less inflationary pressure, keeping mortgage rates affordable.