Katrina puts scare into real estate rates

First of all, let me say that my heart goes out to everyone affected by the tragic events of the past week (some which continue today). Let's all hope that there's a way to recover from this disaster quickly.

The disaster is affecting everything from gas prices to real estate loan rates.

From an article on Inman News today, ""Market jitters about high energy costs and the spill over into other sectors of the economy have led to a decline in bond yields, which typically means lower mortgage rates," said Frank Nothaft, vice president and chief economist at Freddie Mac. "And speculation that the Federal Reserve may soon take a break in raising short-term rates reduces upward pressure on long- and short-term interest rates."

"As if all that wasn't enough, the devastation caused by Hurricane Katrina and the echo effects on future energy prices in the U.S. may mean that mortgages rates will fall even further in the coming days ahead."

This could bode well for both buyers and sellers heading into what looks to be a very active Fall market...