3/12/10 Mortgage Market Week-in-Review
March 14, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
Last Week: 4.95%
Previous Week: 4.97%
1yr Ago: 5.03%
15-yr Fixed - Slightly Lower
Last Week: 4.32%
Previous Week: 4.33%
1yr Ago: 4.64%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
There were few noteworthy events to hit the economic calendar this past week, but one report that proved to be a pleasant surprise was Retail Sales in February showing a nice 0.3% increase. Since the economic recovery has been mainly spearheaded by manufacturing, it's comforting to see signs that consumers may finally be starting to make waves to prop up demand.
On the housing front, foreclosure filings finally seem to be leveling off. Whether it's the government's prevention programs finally showing their impact or the severe weather that hit various parts of the country, foreclosures saw a 2% dip in January and is only up 6% from last year. The foreclosure epidemic should continue to be abated by the newly Senate-passed bill to extend unemployment benefits, which will head to the House for a vote.
What to Look for This Week
The main attraction for the week will be the Fed meeting, which will likely center around plans and expectations for what the new mortgage market will look like once they pull the plug on their purchases of mortgage-backed securities. With just over two weeks remaining, there will likely be contingency plans set in place in case market conditions take a tumble and further hinder the housing market recovery.
Short-Term Rate Outlook
Stable
Stay Informed: What's in the News
"Manpower: Austin Companies Hiring In Q2" from Austin Business Journal
Businesses in the Austin-Round Rock area expect to hire at an active pace through the second quarter of 2010, according to a report issued Tuesday by employment firm Manpower Inc.
Milwaukee-based Manpower (Nyse:MAN) said 16 percent of the 18,000 companies interviewed plan to hire more employees, while only 8 percent said they will reduce payrolls. Another 71 percent said they will keep their work force the same size. About 5 percent are still deciding hiring plans for the quarter.
At 8 percent, Central Texas' net employment outlook only slightly increased for the quarter, moving up from the 7 percent the same period last year. The net employment outlook is calculated by taking the percentage of employers planning to hire and subtracting it by those planning to lay off workers.
"Cities Where the Recession Is Easing" from Forbes
(also available at http://austin.bizjournals.com/austin/stories/2010/03/08/daily2.html?ana=e_du_pub)
Austin-Round Rock Area
Unemployment Rank: 3
Home Price Rank: 13
Three-Year Job Growth Forecast Rank: 2
Job Growth, 2007-2009 Rank: 1
Austin-Round Rock Area tied for number one city best surviving the recession!
"Central TX Foreclosures Fall 17% in February, Up 2.5% Year-Over-Year" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/03/08/daily48.html?ed=2010-03-11&ana=e_du_pub
"Fortune: UT Top School for Entrepreneurs" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/03/08/daily59.html?ed=2010-03-12&ana=e_du_pub
** based on Freddie Mac weekly average survey **
30-yr Fixed - Slightly Lower
Last Week: 4.95%
Previous Week: 4.97%
1yr Ago: 5.03%
15-yr Fixed - Slightly Lower
Last Week: 4.32%
Previous Week: 4.33%
1yr Ago: 4.64%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
There were few noteworthy events to hit the economic calendar this past week, but one report that proved to be a pleasant surprise was Retail Sales in February showing a nice 0.3% increase. Since the economic recovery has been mainly spearheaded by manufacturing, it's comforting to see signs that consumers may finally be starting to make waves to prop up demand.
On the housing front, foreclosure filings finally seem to be leveling off. Whether it's the government's prevention programs finally showing their impact or the severe weather that hit various parts of the country, foreclosures saw a 2% dip in January and is only up 6% from last year. The foreclosure epidemic should continue to be abated by the newly Senate-passed bill to extend unemployment benefits, which will head to the House for a vote.
What to Look for This Week
The main attraction for the week will be the Fed meeting, which will likely center around plans and expectations for what the new mortgage market will look like once they pull the plug on their purchases of mortgage-backed securities. With just over two weeks remaining, there will likely be contingency plans set in place in case market conditions take a tumble and further hinder the housing market recovery.
Short-Term Rate Outlook
Stable
Stay Informed: What's in the News
"Manpower: Austin Companies Hiring In Q2" from Austin Business Journal
Businesses in the Austin-Round Rock area expect to hire at an active pace through the second quarter of 2010, according to a report issued Tuesday by employment firm Manpower Inc.
Milwaukee-based Manpower (Nyse:MAN) said 16 percent of the 18,000 companies interviewed plan to hire more employees, while only 8 percent said they will reduce payrolls. Another 71 percent said they will keep their work force the same size. About 5 percent are still deciding hiring plans for the quarter.
At 8 percent, Central Texas' net employment outlook only slightly increased for the quarter, moving up from the 7 percent the same period last year. The net employment outlook is calculated by taking the percentage of employers planning to hire and subtracting it by those planning to lay off workers.
"Cities Where the Recession Is Easing" from Forbes
(also available at http://austin.bizjournals.com/austin/stories/2010/03/08/daily2.html?ana=e_du_pub)
Austin-Round Rock Area
Unemployment Rank: 3
Home Price Rank: 13
Three-Year Job Growth Forecast Rank: 2
Job Growth, 2007-2009 Rank: 1
Austin-Round Rock Area tied for number one city best surviving the recession!
"Central TX Foreclosures Fall 17% in February, Up 2.5% Year-Over-Year" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/03/08/daily48.html?ed=2010-03-11&ana=e_du_pub
"Fortune: UT Top School for Entrepreneurs" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/03/08/daily59.html?ed=2010-03-12&ana=e_du_pub