Home Sales Down

Falling home mortgage interest rates equates to an increase in US house sales?  Apparently not.  House sales in the US were down year-on-year from August 2005.  Worse, home values are falling at the same time and borrowers looking to free up some of the equity in their homes are rapidly changing their minds right now and putting an hold on things.  In turn this is cooling down the consumer spending in the US, which is what lead to this week’s dive in overall US mortgage rates and bond yields.  All we can hope for now is a turnaround and to have better consumer spending figures, with low US mortgage rates, and increased home sales.  But that might be asking for our cake and eating it.