2/5/10 Mortgage Market Week-in-Review
February 07, 2010
What Did Interest Rates Do This Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Higher
This Week: 5.01%
Last Week: 4.98%
1yr Ago: 5.25%
15-yr Fixed - Relatively Unchanged
This Week: 4.40%
Last Week: 4.39%
1yr Ago: 4.92%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.75%
Last Week: 5.75%
Highlight of This Week's Major Economic Reports
With the current state of the economy being called a 'jobless recovery,' it's a welcome sight to see improvements in the labor market. Slow and small improvements, but improvements nonetheless. The latest employment report showed that the economy surprisingly lost another 20,000 jobs in January after losing 150,000 in December and gaining 64,000 back in November.
Although economists were forecasting job gains last month, there is still very good news to focus on in that the unemployment rate dropped to 9.7% (from 10%). An unemployment rate back in the single digits should help to bolster consumer confidence - some of which we got a glimpse of with a surprise increase in consumer spending last month. The more consumers spend, the faster the economy recovers, and the more companies will start to hire again.
What to Look for Next Week
The economic calendar will be relatively light of significant news that could affect mortgage rates, so expect the stock market to be the heavy influencer in the direction of mortgage rates.
Short-Term Rate Outlook
Relatively Stable
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Higher
This Week: 5.01%
Last Week: 4.98%
1yr Ago: 5.25%
15-yr Fixed - Relatively Unchanged
This Week: 4.40%
Last Week: 4.39%
1yr Ago: 4.92%
Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.75%
Last Week: 5.75%
Highlight of This Week's Major Economic Reports
With the current state of the economy being called a 'jobless recovery,' it's a welcome sight to see improvements in the labor market. Slow and small improvements, but improvements nonetheless. The latest employment report showed that the economy surprisingly lost another 20,000 jobs in January after losing 150,000 in December and gaining 64,000 back in November.
Although economists were forecasting job gains last month, there is still very good news to focus on in that the unemployment rate dropped to 9.7% (from 10%). An unemployment rate back in the single digits should help to bolster consumer confidence - some of which we got a glimpse of with a surprise increase in consumer spending last month. The more consumers spend, the faster the economy recovers, and the more companies will start to hire again.
What to Look for Next Week
The economic calendar will be relatively light of significant news that could affect mortgage rates, so expect the stock market to be the heavy influencer in the direction of mortgage rates.
Short-Term Rate Outlook
Relatively Stable