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Different times of the year can establish different ranges for mortgage rates. Most recently, the low of 5.03% observed on May 26 and the peak of 5.81% on June 11 have have established the extremes of the range we expect Conforming rates to remain in for quite some time.

At the close of business yesterday the 30-year Conforming rate finished at 5.49%, according to HSH.com. Last week the same rate finished at 5.51%. A tiny move of only two basis points isn’t uncommon during the summer when markets tend to get quiet.

Unemployment picked up sharply in June from May. According to the Bureau of Labor Statistics, 467,000 nonfarm jobs were lost last month and the unemployment rate rose to 9.5%.

The fact that layoffs increased by 145,000 from May to June, after falling by 197,000 from April to May, has many analysts disappointed with June’s report, urging that the numbers indicate our economic recovery, particularly pertaining to jobs, is far off.

The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) released the Mortgage Metrics Report for the first quarter of 2009 (1Q09) . Despite some discouraging numbers, the OCC and the OTS say they will “continue to drill deeper into the mechanics of foreclosure prevention actions.”

As the number of foreclosures and delinquencies increased in the first quarter (Jan-March), so did the number of modifications. Loan mods increased by 55% in the quarter, up 172% from the same time last year.

HUD Secretary Shaun Donovan announced this afternoon that Fannie Mae and Freddie Mac will now begin refinancing loans with a loan-to-value (LTV) of up to 125% under the Home Affordable Refinance program. Federal officials have concluded that by expanding the eligibility of the effort, more underwater homeowners will be able to refinance, spurring the recovery of the housing market:

“This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market,” said Treasury Secretary Tim Geithner. “By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It’s a crucial step in our broader efforts to get America’s housing market and economy on the path to recovery.”

According to the Financial Times, Citigroup has increased the interest rate on up to 15 million credit card accounts that the bank co-brands with retailers such as Sears. The increase comes months before the Obama Administration’s credit card reform is scheduled to take hold.

The Credit Cardholders’ Bill of Rights Act, slated to go into effect in early 2010 — pushed up from the originally launch date of July 2010 — is designed to, among other things, prevent credit card companies from raising interest rates without the cardholder’s knowledge:

Hyundai is leading the auto-incentive pack once again. Beginning tomorrow, the South Korean automaker will launch their “Assurance Gas Lock” promotion, an incentive that will offer new vehicle buyers either a $1,000 cash rebate or the chance to lock in gas prices at $1.49/gallon for one year:

With gas prices at $2.70, someone driving a V6 Hyundai Sonata, one of its most popular models, for 12,000 miles over the course of a year would save about $580 with the gas price promotion, given the Sonata’s EPA-estimated 25 miles per gallon fuel economy in combined city and highway driving.

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“The crisis cannot end fully until home prices in the U.S. are at least stabilizing.”
-Alan Greenspan, Former Fed Chairman (hat tip: Seeking Alpha)

As we have written before, during the bottoming of an economic downturn there tends to be both a positive and negative way to interpret economic indicators — especially when they pertain to the housing market. The early stages of a recovery tend to showcase statistics that still look bad in the year-over-year term, yet display an improvement from the month prior.

Has your bank been charging you extra fees on your various accounts? Saddled with losses from rampant foreclosures and credit card delinquencies, banks and credit unions say they have been forced to raise fees and charges in order to maintain a competitive edge in today’s unique economic environment:

“There is an economic storm that has made revenue fall,” said Michael Moebs, an economist and chief executive of Moebs Services, an economic research firm in Lake Bluff, Ill. “Fee income is basically where banks and credit unions can offset both loan- and investment-related losses.”

Last week we reported how Fannie Mae and Freddie Mac’s boss, the Federal Housing Finance Authority (FHFA), was considering whether or not to expand the Home Affordable Refinance Program (HARP) by refinancing loans with an LTV of over 105%. The program’s apparent lack of success has regulators scrambling to find ways to help more homeowners:

“We’re actively considering how to structure a program that makes sense over 105 percent,” Federal Housing Finance Agency Director James Lockhart said yesterday. He said a ratio of 125 percent “is a number” that’s on the table, though “not necessarily the number we’re going to end up with.”

During an economic downturn, it’s the big purchases that consumers tend to shy away from. In an effort to bolster sales and consumer confidence, Sears has announced a program that allows customers who lose their jobs the chance to keep their recently bought appliances if they were purchased with a Sears card:

Customers who spend at least $399 on appliances and related merchandise between July 6 and Aug. 1 will have one-twelfth of the purchase price credited to their account for every month they are out of work, said Larry Costello, a company spokesman. Those who are jobless for more than a year will have the full debt forgiven, he said. The offer period may be extended, he said.

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