1/22/10 Mortgage Market Week-in-Review
January 25, 2010
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
This Week: 4.99%
Last Week: 5.06%
1yr Ago: 5.12%
15-yr Fixed - Slightly Lower
This Week: 4.40%
Last Week: 4.45%
1yr Ago: 4.80%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.75%
Last Week: 5.75%
Highlight of This Week's Major Economic Reports
With little economic data to sway mortgage rates, the bonds market benefited from a stock market slide that was driven by mediocre corporate earnings results and a proposed bank tax. As a result, mortgage rates edged slightly lower.
The major buzz this week was a proposal from the Obama Administration to tax banks who used TARP (government) money to stay in business. Such a tax is estimated to bring in $9 billion in annual revenues for the government, which should help alleviate the massive debts incurred by Fannie Mae and Freddie Mac.
On another note, inflation continues to only be a small blip on the Federal Reserve's radar, as the latest Producer Price Index showed only a modest 0.2% increase last month. As the economy makes its way back into growth territory, inflation is always a concern, but it appears for now that we've got some time before the Fed starts to feel pressured to raise short-term interest rates.
What to Look for Next Week
The Fed will conduct its monthly meeting next week, and they're expected to keep rates unchanged yet again. However, the upcoming vote to keep Ben Bernanke on as Fed Chairman should make for good discussion in what's expected to be an otherwise docile meeting.
Short-Term Rate Outlook
Stable
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
This Week: 4.99%
Last Week: 5.06%
1yr Ago: 5.12%
15-yr Fixed - Slightly Lower
This Week: 4.40%
Last Week: 4.45%
1yr Ago: 4.80%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.75%
Last Week: 5.75%
Highlight of This Week's Major Economic Reports
With little economic data to sway mortgage rates, the bonds market benefited from a stock market slide that was driven by mediocre corporate earnings results and a proposed bank tax. As a result, mortgage rates edged slightly lower.
The major buzz this week was a proposal from the Obama Administration to tax banks who used TARP (government) money to stay in business. Such a tax is estimated to bring in $9 billion in annual revenues for the government, which should help alleviate the massive debts incurred by Fannie Mae and Freddie Mac.
On another note, inflation continues to only be a small blip on the Federal Reserve's radar, as the latest Producer Price Index showed only a modest 0.2% increase last month. As the economy makes its way back into growth territory, inflation is always a concern, but it appears for now that we've got some time before the Fed starts to feel pressured to raise short-term interest rates.
What to Look for Next Week
The Fed will conduct its monthly meeting next week, and they're expected to keep rates unchanged yet again. However, the upcoming vote to keep Ben Bernanke on as Fed Chairman should make for good discussion in what's expected to be an otherwise docile meeting.
Short-Term Rate Outlook
Stable