2/12/10 Mortgage Market Week-in-Review
February 15, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
Last Week: 4.97%
Previous Week: 5.01%
1yr Ago: 5.16%
15-yr Fixed - Slightly Lower
Last Week: 4.34%
Previous Week: 4.40%
1yr Ago: 4.81%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.75%
Previous Week: 5.75%
Highlight of Last Week's Major Economic Reports
Lots of snow in the Northeast and lots of concern over Greece and Portugal dominated the headlines this past week, but they weren't enough to nudge mortgage rates too far from their previous levels.
Perhaps the most noteworthy event for the mortgage market was the announcement by Fannie Mae and Freddie Mac that they plan to buy back "poorly- or non-performing loans" from lenders and investors. What's the significance of this announcement? This move could essentially dump $200 billion of cash back into mortgage-backed securities, while also helping to taper supply, which in turn will help to keep mortgage rates reasonably low. This plan is music to the mortgage community’s ears, as it will essentially accomplish the same thing that the Fed had been doing - and will stop doing on March 31st - keep mortgage rates low.
What to Look for This Week
A holiday-shortened week awaits us, and it's one which is expected to see some pressure for possible upward movement in rates, based on this past week's increase in Treasury yields. However, inflation numbers that fall within economists' expectations and the Fed's "comfort zone" should help to subdue any significant movement in rates.
Short-Term Rate Outlook
Relatively Stable
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
Last Week: 4.97%
Previous Week: 5.01%
1yr Ago: 5.16%
15-yr Fixed - Slightly Lower
Last Week: 4.34%
Previous Week: 4.40%
1yr Ago: 4.81%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.75%
Previous Week: 5.75%
Highlight of Last Week's Major Economic Reports
Lots of snow in the Northeast and lots of concern over Greece and Portugal dominated the headlines this past week, but they weren't enough to nudge mortgage rates too far from their previous levels.
Perhaps the most noteworthy event for the mortgage market was the announcement by Fannie Mae and Freddie Mac that they plan to buy back "poorly- or non-performing loans" from lenders and investors. What's the significance of this announcement? This move could essentially dump $200 billion of cash back into mortgage-backed securities, while also helping to taper supply, which in turn will help to keep mortgage rates reasonably low. This plan is music to the mortgage community’s ears, as it will essentially accomplish the same thing that the Fed had been doing - and will stop doing on March 31st - keep mortgage rates low.
What to Look for This Week
A holiday-shortened week awaits us, and it's one which is expected to see some pressure for possible upward movement in rates, based on this past week's increase in Treasury yields. However, inflation numbers that fall within economists' expectations and the Fed's "comfort zone" should help to subdue any significant movement in rates.
Short-Term Rate Outlook
Relatively Stable