Mortgage Rates Are Hanging In Thereby Tim Manni
While we wrote last Monday that “Mortgage Rate Stability May Not Last,” it appeared as though it did. Mortgage rates held steady last week as the stock market’s woes “did produce somewhat lower Treasury yields,” which could help mortgage rates trend downward this week.
According to the latest issue of HSH’s Market Trends Newsletter, “The overall average for mortgage rates as measured by HSH’s Fixed-Rate Mortgage Indicator (FRMI) ticked just three basis points higher, so the average price of all loans [last] week — conforming, jumbo and agency jumbo — rose to 5.45%. The FRMI’s 5/1 Hybrid ARM companion was unchanged at a 4.69% average rate for the week. Thirty-year Jumbo FRMs put in their third week out of the last four just below the 6% level.”
When Will the Recession End?
“We cannot wait for the day when a supposedly growing economy feels like an actually growing economy. The National Bureau of Economic Research — the official arbiters of the recession’s beginning and end — probably won’t weigh in with the official end date for some time yet. Hopefully, by the time they do, we won’t actually care to look backward or quibble over what it means, since a real expansion featuring strong job markets, firming home prices, and rising incomes will be the focus of our days again.”
“That’s not coming tomorrow or the day after, and probably not for some time. Until then, we can content ourselves with a cascade of first-week-of-the-month data, including two ISM reports, auto sales, construction spending, worker productivity, the employment report, consumer borrowing numbers and more. Did we mention that there’s also a two-day Federal Reserve meeting, too? If you liked the volatile markets of this week, next week will probably be your cup of tea, too.”
Where Will Rates End This Week?
“The scary market on Friday drove some money in Treasuries, so mortgage rates are likely to start [this] week on a slightly softer note. How they finish the week, though is hard to predict. We’ll wager that they ease back somewhat by the time the week is through.”
Click here to continue reading “Rates Holding, But Activity Slips.” 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.