What is going on with interest rates?

Interest rates have been on the decline for sometime now. However, according to the Washington Post, the Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down mortgage loan rates to stimulate the housing market. These rates will apply only to the purchase of a home. It will not apply on re-finance transactions. However, it is expected that this move will force the rest of the rates for re-finance down also. Not as much as for a purchase, but still down.

I was talking to a mortgage person the other day and the word is that they are talking down to around the 4.5% range. If this were to happen, the increased demand for housing will start to drive home prices up again.

As I have said before, we will eventually overcome the slowdown and recover. It is just a matter of time.

Kansas CIty and Johnson County Real Estate Statistics

In October of 2008 there were a total of 23,848 homes for sale in the greater Kansas City area. 4,092 homes were placed for sale during the same month whereas 2,774 home went sales pending and 2,389 were sold (ownership changed). Mean while 2,784 homes failed to sell.

The average price of the homes for sale was $211,559 where the average price of the homes sold was $163,785.

The average days on the market was 38 days and the homes sold at 93% of the asking price.

In Johnson County

1st quarter 1141 homes sold
2nd quarter 2241 homes sold

1st quarter 254 new homes built,
average days on the mrkt 92,
Homes on the mkt 4,283,
Average price $262,500

2nd quarter 152 new homes built,
Average days on the mkt 85,
Homes on the mkt 6,841,
Average price $262,200