“Mortgage Rates Pretty Stable. Economy, Not so Much”by Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Pretty Stable. Economy, Not so Much,” after another week of dismal economic reports, the clocks may be the only thing moving forward.
“We’ll get longer days starting on Sunday, but the days feel quite long enough already, what with the difficult economic environment. Perhaps a sun still shining for the evening commute will lend some cheer, as may the warmer days which will follow. At a time when things are pretty difficult, it’s at least something to look forward to.”
“As has been the case of late, mortgage rates failed to move very much, even as equity markets slumped and long-term Treasuries bounced around a bit. The overall average for 30-year fixed-rate mortgage money — HSH”s Fixed-Rate Mortgage Indicator — declined by two basis points to land at 5.80%. The FRMI’s 5/1 Hybrid ARM counterpart shed three basis points to close the survey week at 5.48%, while conforming 30-year FRMs increased by a single basis point.”
“Certain of the economic data was as flat as the rates. Take the Institute for Supply Management manufacturing indicator, which came in at 35.8 for February, a still-awful number. It showed just a whisper of improvement over January’s 35.6 reading, but was certainly stable, if at terrible levels. That was also the case with the ISM’s non-manufacturing gauge, which eased just a little from January’s level, slipping to a 41.6 mark, a decline of 1.3 points for the month.”
“Hard to think that there’s any reason for mortgage rates to break strongly in one direction or another next week, so we’ll look for little change to rates again. However, what might happen over the next couple of months? You’ll need to read our new two-month forecast to find out.”
Click here to continue reading “Mortgage Rates Pretty Stable. Economy, Not so Much.” 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.