The Real Deal Miami

Low interest rates not helping home sales

December 03, 2008 03:57PM

Even low interest rates aren’t increasing home sales. Homebuilders,
including Toll Brothers, Pulte Homes and Beazer Homes, have been
reporting major losses. Homeowners who are already underwater on their
loans also aren’t helped by low interest rates. But low interest rates
have driven many more borrowers to Fannie Mae and Freddie Mac, which
have handled 26 percent of new loans so far this year, compared to 3
percent in 2007.