Market Trends — Mortgage Rates Post Sharp Declinesby Tim Manni
Today’s issue of HSH’s Market Trends Newsletter focuses on last week’s sharp decline in mortgage rates:
HSH’s measure of the overall cost of mortgage money — our Fixed-Rate Mortgage Indicator (FRMI) — declined by 37 basis points (.37%), finishing the survey week at 6.71%. The overall average for hybrid 5/1 ARMs rang in at 6.69%, down just 11 basis point on the week. HSH’s FRMI includes conforming, jumbo and expanded conforming mortgage prices. See the latest trending charts for these and other series.
This week’s issue also discusses various economic reports released last week, analyzing the impact on consumers:
Weekly claims for unemployment seem to be stabilizing, albeit at lofty levels. The 478,000 filings at state windows during the week ending October 18 did represent an uptick from the week prior, but remains in a range we’ve become accustomed to seeing over the past five or six weeks now, one that suggests continued deterioration in employment markets.
Despite ongoing dire predictions for the housing markets, sales of existing homes rose strongly in September, rising 5.5% to a 5.18 million (annualized) rate of sale. Measured against last year, sales showed their first year-over-year increase in three years, and moved at a pace last seen in August 2007.
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!