Monday’s Market Trends Recapby Tim Manni
This week’s issue of HSH’s Market Trends Newsletter “Market Stresses Push Rates Higher,” examines the causes and effects of rising mortgage rates, inflation, weak homes sales, unemployment, and how they affect you.
July 25, 2008 — News of rising mortgage rates was everywhere you looked this week. With all the troubles in the marketplace and lenders still sporting many billion dollar losses, risks continue to rise, and rising risks mean higher rates.
After touching a flat 7% mark four weeks ago, HSH’s Fixed Rate Mortgage Indicator (FRMI), the overall average interest rate for 30-year FRMs of all stripes — including conforming, jumbo and expanded conforming offerings soundly cracked that level this week, landing at 7.10%, the highest overall rate since April 2002 and a 24-basis point increase for the week…
As well, the index of Leading Economic Indicators improved to a lesser decline, slipping by 0.1% in June, up from a 0.2% dip in May. The LEI is purportedly a forecasting tool for the period just ahead, but seems to reveal the present climate to a better degree. Positive numbers have been hard to come by here, with just one notched this year.
HSH’s free, weekly Market Trends Newsletter, an in-depth analysis of various financial markets of the week prior, is published every Monday. Email subscribers — receive it in your inbox by Friday night, so sign up today!