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June 22nd, 2009

“Mortgage Rates Ease Somewhat”

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According to the latest issue of HSH’s Market Trends Newsletter, “Mortgage Rates Ease Somewhat,” as we expected, mortgage rates eased back from their three-week run upwards. “A tempering of enthusiasm about how quickly the economy will resume a pattern of growth and no new auctions of Treasury Bonds contributed to the decline.”

“Overall, fixed mortgage interest rates declined by 13 basis points, according to HSH’s Fixed-Rate Mortgage Indicator, which includes rates for conforming, jumbo and expanded conforming loans. At 5.91%, rates remain quite favorable for potential homebuyers but probably not low enough to see refinancers lining up at lender offices. The overall average for 5/1 hybrid ARMs moved down by 11 basis points, landing at 5.33%. Conforming 30-year FRMs, perhaps the most important product in the market, slipped back by seventeen basis points for the week, while true 30-year FRM jumbos managed a decline of nine.”

“Another cascade of debt, which the market will be asked to absorb, comes due next week with a fresh (and record-setting) $104 billion in Treasury offerings. Rates moved higher prior to the last set of auctions of all debt maturities, but eased after demand turned out to be pretty solid for those new obligations. That was especially true for the longer-dated issues, which tend to affect mortgage rates. Next week’s auctions cover two-, five- and seven year notes.”

“There can be no doubt that the economy is on an upward bent at the moment, climbing from truly awful depths. At this point, however, even outsized gains from one month to the next merely move us to a better grade of lousy, or levels which are still consistent with economic decline. For example, much was made of the 17% gain in housing starts during May; that gain was a rebound off the bottom of the bottom for starts, and the overall number of a 532,000 (annualized) rate of initiation was about the same as that seen in February and March. Single-family starts moved higher as well, but only represented the ‘highest’ level since last November when things were still worsening. Permits for future activity moved upward to 518,000, again roughly equivalent to March levels.”

Click here to continue reading “Mortgage Rates Ease Somewhat.” 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.”

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2 Responses to ““Mortgage Rates Ease Somewhat””

  1. The truth about Mortgage-backed securities | Personal Loan Lenders, Resources, Information Says: June 23rd, 2009 at 5:42 pm

    [...] “Mortgage Rates Ease Somewhat” | HSH Financial News Blog [...]

  2. What to Expect From a Jumbo Mortgage Loan | afcmortgagefl.com Says: June 27th, 2009 at 11:28 am

    [...] “Mortgage Rates Ease Somewhat” | HSH Financial News Blog [...]

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

Our bloggers:

Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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