Housing Snapshot - November 8, 2004 - 11/8/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - November 8, 2004

Mortgage interest rates were up slightly last week, but the cost of fixed-rate financing was below the level of a year earlier. Freddie Mac Chief Economist Frank Nothaft attributed the increase to uncertainty in the bond market, which was trying to reconcile signs of weakness in manufacturing with strength in the service sector. Nothaft said prospects for the economy, and mortgage rates, continue to look favorable. The Labor Department reported the addition of 337,000 jobs to the economy in October, buoyed to some extent by post-hurricane recovery efforts in Florida. Since last August, 2.2 million jobs have been created. More good news came from oil prices, which started heading in a downward direction in response to rising U.S. stockpiles of crude and natural gas. The dollar was down last week, reflecting concerns over the magnitude of the U.S. trade and budget deficits. All was quiet on the lumber price front last week. Framing prices dropped from $358 to $355 per 1,000 board feet, according to Random Lengths, compared to $327 a year earlier. Random Lengths' structural panel composite price, which includes oriented strand board, moved up from $319 to $322 per 1,000 square feet, compared to $549 a year earlier.