1/15/10 Mortgage Market Week-in-Review
January 17, 2010
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
This Week: 5.06%
Last Week: 5.09%
1yr Ago: 4.96%
15-yr Fixed - Slightly Lower
This Week: 4.45%
Last Week: 4.50%
1yr Ago: 4.65%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.75%
Last Week: 5.875%
Highlight of This Week's Major Economic Reports
The economy continues to sputter along, as data continues to report still-weak but improving conditions throughout the country. For instance, all but two of the 12 Federal Reserve districts noted that, "while economic activity remains at a low level, conditions have improved modestly further."
With the economy not yet fully able to stand on its feet, there is growing sentiment that the Fed may extend its self-proclaimed deadline of March 31st for purchase of mortgage-backed securities. At the very least, however, we can expect that short-term rates should remain very low for awhile, especially since inflation continues to pose little threat at the moment.
Speaking of inflation, December's Consumer Price Index rose by a paltry 0.1%, which means that prices consumers paid for goods last month didn't move too much from the previous month.
Despite the stability in prices, however, Retail Sales still fell short of expectations. Spending in December declined 0.3% compared to November; but, on the bright side, November's figure was upgraded to a positive 1.8%. We'll just chalk this up as consumers getting an early start to the holiday shopping season!
What to Look for Next Week
The markets are closed on Monday, but the holiday-shortened week isn't expected to generate any newsworthy event that could drastically affect interest rates.
Short-Term Rate Outlook
Stable to Possibly Lower
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
This Week: 5.06%
Last Week: 5.09%
1yr Ago: 4.96%
15-yr Fixed - Slightly Lower
This Week: 4.45%
Last Week: 4.50%
1yr Ago: 4.65%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.75%
Last Week: 5.875%
Highlight of This Week's Major Economic Reports
The economy continues to sputter along, as data continues to report still-weak but improving conditions throughout the country. For instance, all but two of the 12 Federal Reserve districts noted that, "while economic activity remains at a low level, conditions have improved modestly further."
With the economy not yet fully able to stand on its feet, there is growing sentiment that the Fed may extend its self-proclaimed deadline of March 31st for purchase of mortgage-backed securities. At the very least, however, we can expect that short-term rates should remain very low for awhile, especially since inflation continues to pose little threat at the moment.
Speaking of inflation, December's Consumer Price Index rose by a paltry 0.1%, which means that prices consumers paid for goods last month didn't move too much from the previous month.
Despite the stability in prices, however, Retail Sales still fell short of expectations. Spending in December declined 0.3% compared to November; but, on the bright side, November's figure was upgraded to a positive 1.8%. We'll just chalk this up as consumers getting an early start to the holiday shopping season!
What to Look for Next Week
The markets are closed on Monday, but the holiday-shortened week isn't expected to generate any newsworthy event that could drastically affect interest rates.
Short-Term Rate Outlook
Stable to Possibly Lower