Bob Walters Rates Quotations

News from the Fed that they may continue raising short-term rates surprised the market, causing short-term rates to exceed long-term rates.

Low long-term rates and a strong jobs market will continue to provide substantial support to the housing market.

We may see a flattening of the increase, but not much of a drop. The fundamentals remain strong: Employment is robust, and interest rates remain low.

The trend of homeowners to exit adjustable rate mortgages into the safety of fixed rates has intensified; those homeowners realize that when those ARMs adjust, they will adjust to rates higher than today's current 30 year fixed rate.

Fixed mortgage rates stayed in a narrow, historically low, band in February.

Affordability will keep prices in check, But for as long as rates stay near historic lows and employment remains strong, I think pricing will stay strong. We probably won't see the double-digit gains that we've seen.

Home sales will remain strong because all the fundamentals remain rock solid. Long-term rates are falling, inflation is falling and employment remains strong.

The bulls basically hoped for a number showing housing is eroding, and they didn't get it. I'm not surprised. As long as jobs are strong -- as long as interest rates are low -- this isn't going to change.

Although down somewhat, the purchase market continues to benefit from strong job formation and long-term mortgage rates that have remained within range of 40-year lows.