San Luis Obispo Ca Real Estate

Interest Rates and The Economy Report for November 2006

Fixed interest mortgages rates have dropped by a full 1/2 percent since last May, now near 6%. Variable home equity loan rates have stabilized at about 8%. While fixed rate loans haven’t been this good in 2 years, adjusted rate loans continue to worry homeowners since each rate adjustment brings higher payments. Many homeowners have been taking action to dump their adjustable rate loans for fixed rate loans.  On the economic front, productivity in the US has been increasing at an astonishing pace due to technological advances, more than offsetting the adverse affects of off-shoring of manufacturing. The only dark cloud on the horizon is the new housing starts have dropped, with construction workers moving from residential to commercial.