Housing Snapshot - August 9, 2004 - 8/9/2004 - Mortgage Loan Refinance Debt Equity

Housing Snapshot - August 9, 2004

Mortgage interest rates declined a bit last week as the financial markets continued to digest unsettling economic news. A report on Friday that only 32,000 jobs were created in July helped drive the stock market average to its lowest level since December 10. In the meantime, according to most expectations, the Federal Reserve was preparing to notch up its federal funds rate by one-quarter of a percentage point to 1.5%. Its announcement on Tuesday will be closely read to see how the current "slow patch" in the economy might affect current monetary policy if it turns out not just to be a passing phase. Economic growth declined to a moderate annual rate of 3% in this year's second quarter. On the lumber price front, prices continued to move up aggressively. Random Lengths reported that the cost of framing lumber increased to $472 per 1,000 board feet, its highest level in more than five years. Panel prices were also on an upswing, following a brief respite earlier this summer. The price of 15/32-inch 3-ply CDX southern west-east plywood was $400 per 1,000 square feet, up from $370, and oriented strand board was $375, up from $340.