Mortgage Rates Inch Up, Markets Rally at Day-End

August 16, 2007  by in UnCategorized   

By Home Furnishings Business in on August 2007 Interest rates for 30-year fixed-rate mortgages increased slightly on Thursday, as stocks took a wild ride before a late-day rally. Freddie Mac, the federal government-owned corporation that packages and resells home mortgages to investors, reported the 30-year rate at 6.62 percent, up slightly from 6.59 percent a week ago.

According to Freddie Mac, the interest rate for 30-year fixed-rate mortgages stood at 6.22 percent in January, falling to 6.16 percent in March before reaching a 12-month high of 6.70 percent in July. For the first three weeks of August, the 30-year rate averaged 6.63 percent.

Just weeks after surpassing the 14,000 mark, Thursday’s Dow Jones Industrial Average finished at 12,845.78, following a seesaw day that saw the Index vary from12,517.94 to 12,885.85. Thursday’s close was just 15.69 points lower than Wednesday’s.

Analysts blamed credit worries and housing concerns for Thursday’s 300-point fluctuation.

Furnishings stocks, for the most part, fared better than the Dow Jones Industrial Average. Furniture Brands International opened the day at 11.33 before reaching a high of 12.25 and then finished at 12.00. La-Z-Boy ended the day at a high of 9.37, up from opening at 8.65 and Ethan Allen closed at 34.55, up from 32.06 on Wednesday.

JCPenney, one of the largest retailers of home furnishings, opened at 62.27, climbed to 64.87 and then closed at 64.14. Penney held its second-quarter earnings conference call during the day and said earnings were up nearly 2 percent, despite a weakening in home furnishings sales due to falling housing numbers.

Among a large number of furnishing stocks closing up from Wednesday were Masco, Tempur-Pedic, Select Comfort, Stanley Furniture, Leggett & Platt and Sears.