Mortgages will remain hard to get until common sense returns | Katonah Real Estate

Long-term rates stayed about the same this week, mortgages just above 4.5 percent for most products. There are many things to write about this week, but the most important news for most Americans is the first retreat from Dodd-Frank toward common sense.

Economic data stayed in pattern — reasonable growth without acceleration. Overall orders for durable goods fell 7 percent in July, but excluding volatile orders for airplanes and such gained 0.6 percent. Pending home sales fell 1.3 percent in July, but from an improved level.

Second-quarter GDP was revised up from 1.7 percent to 2.5 percent annualized, but net of accounting gyrations still two-ish — way under the Fed’s forecast, as is inflation, barely 1 percent annualized. Consumer spending and incomes in July rose 0.1 percent versus forecast gains of 0.2 percent and 0.3 percent, respectively.

The threat of action against Syria is still suppressing rates, but that won’t last long. A brief hail of Tomahawks won’t change anything, serious regional upset unlikely.


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