Financing costs for residential real estate drifted slightly lower last week, according to Freddie Mac’s weekly mortgage survey. The benchmark 30 year rate fell by two basis points from 4.12% to 4.10%. Similarly, the 15 year average dropped by just one basis point to 3.23%. The 30 year fixed rate hasrates continue to fall for investors been at or below 4.20% since mid-May for owner occupied properties and 4.25% for rental homes.

This is in spite of the fact that the QEIII program is coming to a gradual halt in October but most investors have ignored the priming and placed funds in mortgage bonds, helping to keep rates lower. Rates are just about one-half percent lower today than this time last year. For real estate investors, this is continued good news.

There are several economic reports due out this week, perhaps none more intriguing than the second go-round of the Q2 GDP number. The initial release claimed GDP rose a respectable 4.00%, this after a -1.1% drop in the first, quarter. That’s a 5.1% swing. Yes, there were weather issues that kept shoppers out of stores and factory production lagged but such a significant change sometimes indicates nothing more than a statistical anomaly and the second GDP estimate might account for the changes.

The S&P 500 briefly topped the 2,000 mark today but closed at 1997.92, still yet another record. The Dow also closed strongly at 17076.87. There are reports there will be a new economic stimulus program by the European Central Bank that gave markets a boost however we should see what happens tomorrow and watch for any selloff. So far, ECB stimulus programs haven’t been all that impressive. If stocks do pull back tomorrow it’s possible mortgage bond yields will rise as well.