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Will low mortgage rates help housing market?

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    WSJ's Steve Moore weighs in on economy

  • Duration 4:24
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Three big headlines for you today in the business world and this is the first one the average rate for a thirty year fixed mortgage.

Is now -- record low of three point 83%.

-- the fifteen year mortgage on averages also had a record -- that's and then think about.

Today we -- -- and 67000 Americans filed for first time unemployment in the latest week.

The four week average is right around 370000.

-- -- 380000 -- -- and gas prices are also down in fact for seven days in a row gas prices have dropped so some important things for us to think about today.

Steve Moore is an editorial board of the Wall Street Journal all.

To Steve are any of those items related.

-- -- -- I think the really big news the one that I get so excited about is that three point 8%.

Mortgage interest rate.

-- I can't tell you something when you're talking to -- keep kids in your grandkids have forty years from now you're gonna -- -- there was a time we had a three for it's point 8% mortgage interest rate.

In this country because I don't think we're ever gonna see that again.

But you know those low interest rates are really one of the few positive signs we're seeing in -- economy they make that.

Cost -- Boeing -- I think of how bad the mortgage crisis would be right now.

-- we you know ten or fifteen or 20% mortgage interest rates like we had under Jimmy Carter so odd that makes me feel very good that those rates are -- law.

There's rates really gonna help things on the housing market -- are their nephew wow yeah can take advantage of them you thank.

Yeah outlook you know -- of them mortgage interest rate is an important impetus to getting people new homebuyers to buy houses so yeah.

I think it is helpful -- obviously -- you're right we have all these negative.

Things going -- -- housing the high foreclosure -- the fact that people's incomes are rising so it's tough for them to pay the mortgages.

But did put it this way it's a lot easier to pay a mortgage when you're only -- 4% mortgage interest rate that if you're paying you know eight or -- -- That's true yeah I see that you're on the road.

Traveling in Seattle and -- taco I bet you know the lot of people around the country about the economy and on the issue of jobs in this curious are you hearing any new idea -- Brand new ideas about what to do about the job market it how to get more people back to work.

Well look I mean this is going to be.

There's really three issues are going to be to -- in -- -- campaign for presidency jobs jobs and jobs.

That and look of them Mitt -- you have to do I think a better job convincing the American people that his economic plan with the tax rate cuts and and not taking some of these regulations on businesses -- the way to get jobs back.

I think you you know about Barack Obama's gonna have a very difficult time explaining and Americans why we've had such a lousy job market for such a long time.

We've got -- 38.

Straight months -- have 8% plus unemployment.

And and as you know we've talked about this before but the real unemployment rate in this country is not 8% -- If you count those people just become so discouraged they're not even looking for a job any longer.

I'll real unemployment rate this country's -- to -- 11% which is which just got catastrophic leak.

High number they don't -- it it I hit -- it's -- almost seems normal now rank that we've seen says -- and unemployment but.

When people are going to the polls when things are gonna have to do is -- their gas tank and if gas prices are lower.

Then people tend to feel a little bit better about the economy there's a debate happening right now about whether or not.

I gas prices are low just because there's not man in the economy's -- or maybe something else is going on with your theory on that.

Well first -- -- I agree with you John I gas prices is another kind of indicator of how Americans are feeling -- of about the economy and every.

Every time we paid maybe a little bit lots at the tag in your right the last stuff few weeks we have start to see yet the very welcome decline in those gas prices but they're still pretty -- I mean I live in Virginia we're still paying about -- -- -- But this is this is gonna help Barack Obama unquestionably over the next few months if we see those gas prices start to fall because if people have to pay less for gasoline -- especially people living out of limited budget they have more discretionary income -- On other things that they want so that's a positive thing for the economy and the -- -- -- to put it just has every -- the gas and oil price -- it's like -- tax cut for the American consumer.

And that means they have more money to stop and that's always a good thing.

Expect to have a -- capital analyst definitely -- a pretty good idea.

For today for why.

I would say the threat we haven't actually -- -- -- -- your personal hour about -- -- I have a cat got your public parks does back the right.

That's keeping a nice I don't -- you.

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