Over the last couple of days we have had some real serious economic news. The National Association of Realtors (NAR) just announced that the formulas they have been using since 2007 to calculate home sales have had a problem, which has created inflated data. As a result, housing data for monthly home sales since 2007 has been overstated. Why is that bad? That means that home sales have not been as high as we have all thought for the last five years. It is actually worse. At least 15% worse. That isn’t good. Thanks NAR. I guess I would give them a golf clap for owning up to the mistake.

Why is this such a big deal? I mean, the data is just a look at the buying behaviors of consumers, right? That is true. But many companies use that data for financial forecasts and to help them make decisions for capital improvements. Many economists use that data to help them determine the health of the U.S. economy. Many people use that data to help them decide when to list their home or to buy a home. I know professionals like me use this data to determine the health of the housing segment and to understand when the turnaround has occurred.

While I looked and looked on the NAR website for a press release on this subject, there was not one to be found. I had to rely on the newspaper articles.

The most recent communication from the Federal Reserve was also published. The Fed decided that the U.S. economy is slightly healthier and they took no steps to boost it. The challenge that we have since the Fed Board of Governors met, the Europeans have not been able to finalize their agreement to get their regional economies under control. The world economy is extremely volatile right now. Unemployment remains high, and the markets have all fallen significantly. While foreclosures have fallen, they have in no means cleared the system. There are still lots of foreclosures to come, which means to me that there is still more bad news to come in the housing market. I am not sure we have hit bottom quite yet.

As a consumer, the good news to pick out of this cauldron is that mortgage interest rates remain low. If you want to refinance your mortgage or to buy a home in Utah, you can get a great rate on your mortgage. There is a large supply of homes for sale in Utah right now, so you really have your pick when it comes to the features of your new home. Following is the table of the national average mortgage rates for a new mortgage on 12.14.2011. The interest rate on a refinance is a touch higher, but this table gives you a good idea.

So rates are remaining steady right below 4.0% right now. What should you do if you are looking to get a low interest rate on your mortgage? My recommendation would be to watch Treasury yields and the stock market. If they start to creep up after the first of the year, you should carefully monitor mortgage rates. Like I have mentioned time and again, find a rate that you are happy with and move forward. Personally I don’t think there is much more space for them to fall, but I do not expect them to rise significantly until the U.S. economy begins to rebound.