Mortgage Rates, Like Economy, Flatby Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates, Like Economy, Flat,” the bad economic news that “used to bring the silver lining of lower mortgage rates,” hasn’t helped as it has in the past.
“Mortgage rates were pretty flat. HSH’s overall average for the cost of mortgage money — our Fixed-Rate Mortgage Indicator (includes conforming, jumbo and ‘expanded conforming’ interest rates) — rose again this week by three basis points to land at 5.82%. The FRMI’s 5/1 Hybrid companion slipped back by four basis points, closing the survey week at 5.51%. Although jumbo 30-year FRMs slipped back a little to 6.73%, conforming FRMs rose by seven basis points.”
“President Obama spoke to the Congress this week to offer some measure of encouragement in that we’ll together face the troubles which confront us. Given that the outlook has become somewhat more bleak in the month since the inauguration, that expression of support may mean little. Failing banks and markets, plus falling values for homes and retirement accounts, have considerably darkened the nation’s moods, and many people remain unconvinced that the plans and concepts pressed by the new administration will work as advertised.”
“The torrent of data due out next week is likely to be a more of a continued litany of troubles, with auto sales, manufacturing indicators, the Fed’s regional survey of economic conditions and that employment report all contributing to the gloom.”
“Those dark clouds used to bring the silver lining of lower mortgage rates, but rates are stubborn at present levels and there’s little reason for them to go either way at the moment. Stability’s not a bad thing, given certain of the alternatives, and perhaps interest rates at these levels coupled with the ability to refinance a GSE-held loan that is close to or mildly underwater might provide some brightness though those clouds. We’ll see.”
“Click here to continue reading “Mortgage Rates, Like Economy, Flat.” 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! Also, be sure to check in with our Market Trends blog for all news relating to any weekly shift in mortgage rates.