Housing Snapshot - August 16, 2004 - 8/16/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - August 16, 2004

Mortgage interest rates continued to recede slightly last week as investors worried about the health of the U.S. economy. According to Amy Crews Cutts, deputy chief economist for Freddie Mac, fixed-rate mortgage rates should stay around 6% for a while, "giving prospective home buyers another chance to get in with a low rate." The Federal Reserve and other observers of the nation's economy still expect good growth in this year's second half, despite a slowdown in June. However, the latest news on the economy was not encouraging last week: the U.S. trade deficit set another record in June and oil prices reached a new high of $46.58 a barrel, both raising concerns about prospects for growth of the Gross Domestic Product in coming months. On the lumber price front, prices continued to advance, although at a fairly slow pace. The cost of framing lumber climbed to $474, up $2 from the previous week. The price was $322 a year earlier. The price of 15/32-inch 3-ply CDX southern west-east plywood was up $5 to $405 per 1,000 feet and oriented strand board was up $10, to $385.