4/2/10 Mortgage Market Week-in-Review
April 05, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Higher
Last Week: 5.08%
Previous Week: 4.99%
1yr Ago: 4.78%
15-yr Fixed - Higher
Last Week: 4.39%
Previous Week: 4.34%
1yr Ago: 4.52%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
The Fed officially ended its purchase of mortgage-backed securities on March 31st, but the rise we saw in mortgage rates actually wasn't attributed to this. Surprisingly enough (or perhaps not), encouraging economic data helped spur a week-long rise in rates that is expected to continue through at least this week.
The biggest headliner to affect the stock market and rates came from the Labor Department, who reported that 162,000 jobs were created in March, while the unemployment rate held steady at 9.7%. Of course, part of this boost in jobs came in the hands of the government, which hired 48,000 temp workers to help with the census, but investors still reveled in the largest increase in payrolls that we've seen in quite some time.
What to Look for This Week
Relatively quiet week on the economic calendar, so the main focus will be on Uncle Sam, who will be looking to borrow $82 billion in the form of Treasury auctions. Weak demand for these Treasuries will likely have a negative impact on rates - similar to what we saw a couple of weeks ago.
Short-Term Rate Outlook
Higher
Between the absence of the Fed's influence on mortgage rates and an economic expansion that continues to gain steam, it is widely expected that we'll see rates rise through the remainder of the year; however, most economists agree that the increase should range at no more than 0.5-0.75%.
Stay Informed: What's in the News
"Don't Mess With Texas" from Forbes
According to the most recent Census estimates, the Dallas and Ft. Worth, Texas, region added 146,000 people between 2008 and 2009--the most of any region in the country--a healthy 2.3% increase.
Other Texas cities also did well. Longtime rival Houston sat in second, with an additional 140,000 residents. Smaller Austin added 50,000--representing a remarkable 3% growth--while San Antonio grew by some 41,000 people.
"Texas's Jobless Rate Decreasing" from Texas A&M Real Estate Center
Both the U.S and the Texas labor markets hit bottom in August 2009 and since then have been losing jobs at decreasing rates. Texas's job loss rate has decreased from 4 percent in August 2009 to 2.3 percent in February 2010. Over the same period, the U.S. job loss rate has decreased from 5 percent to 2.5 percent.
The state's seasonally adjusted unemployment rate rose from 6.8 percent in February 2009 to 8.2 percent in February 2010, while the U.S. rate rose from 8.2 percent to 9.7 percent during the same period.
Only one Texas industry, education and health services, and the government sector had more jobs in February 2010 than in February 2009. Ten other industries experienced net job losses over the same period.
Four Texas metro areas had positive employment growth rates from February 2009 to February 2010. They were College Station-Bryan, Killeen-Temple-Fort Hood, Waco and McAllen-Edinburg-Mission. Twenty-two metro areas had net job losses.
The state's actual unemployment rate in February 2010 was 8.3 percent. Amarillo had the lowest unemployment rate followed by Midland, College Station-Bryan and Lubbock.
"Texas's Existing Home Sales Down, Prices Up in February" from Texas A&M Real Estate Center
A total of 13,064 existing single-family homes were sold in Texas last month, a 2 percent drop from February 2009, according to MLS data compiled by the Real Estate Center at Texas A&M University.
The median price was up 2 percent to $141,100 during the same period, and the state finished the month with a 6.9-month inventory of existing homes.
Austin - 1,276 sales (up 7% from last year)
$182,000 median price (down 3% from last year)
6.2 months' inventory
"Austin New Home Starts Jump" from Austin American Statesman
Central Texas builders started nearly 31 percent more homes in the first three months of this year compared with a year earlier, the first year-over-year quarterly increase in 3.5 years and a sign the local housing market may be turning around.
First-quarter starts also were up 14 percent from the fourth quarter of 2009.
"What Do Today's Homebuyers Want?" from Texas A&M Real Estate Center
In today's economy, home builders must pay close attention to what buyers say they prefer in a new home. The Real Estate Center's latest video, "What Homebuyers Want in 2010," features two experts with perspectives on buyer preferences.
Rose Quint is assistant vice president with the Survey Research Economics and Housing Policy Group for the National Association of Home Builders. Eliot Nusbaum is executive editor of Better Homes and Gardens.
"30 Days and Counting: Homebuyer Tax Credit Expires" from CNNMoney.com
Attention shoppers: You have barely a month left before the homebuyer tax credit expires. But depending on where you live, you might not want to rush out to buy. First-time homebuyers may qualify for up to $8,000, while those who are trading up could get as much as $6,500. But either way, buyers have to ink sales contracts by the end of April and close before July 1 to see the refund.
** based on Freddie Mac weekly average survey **
30-yr Fixed - Higher
Last Week: 5.08%
Previous Week: 4.99%
1yr Ago: 4.78%
15-yr Fixed - Higher
Last Week: 4.39%
Previous Week: 4.34%
1yr Ago: 4.52%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
The Fed officially ended its purchase of mortgage-backed securities on March 31st, but the rise we saw in mortgage rates actually wasn't attributed to this. Surprisingly enough (or perhaps not), encouraging economic data helped spur a week-long rise in rates that is expected to continue through at least this week.
The biggest headliner to affect the stock market and rates came from the Labor Department, who reported that 162,000 jobs were created in March, while the unemployment rate held steady at 9.7%. Of course, part of this boost in jobs came in the hands of the government, which hired 48,000 temp workers to help with the census, but investors still reveled in the largest increase in payrolls that we've seen in quite some time.
What to Look for This Week
Relatively quiet week on the economic calendar, so the main focus will be on Uncle Sam, who will be looking to borrow $82 billion in the form of Treasury auctions. Weak demand for these Treasuries will likely have a negative impact on rates - similar to what we saw a couple of weeks ago.
Short-Term Rate Outlook
Higher
Between the absence of the Fed's influence on mortgage rates and an economic expansion that continues to gain steam, it is widely expected that we'll see rates rise through the remainder of the year; however, most economists agree that the increase should range at no more than 0.5-0.75%.
Stay Informed: What's in the News
"Don't Mess With Texas" from Forbes
According to the most recent Census estimates, the Dallas and Ft. Worth, Texas, region added 146,000 people between 2008 and 2009--the most of any region in the country--a healthy 2.3% increase.
Other Texas cities also did well. Longtime rival Houston sat in second, with an additional 140,000 residents. Smaller Austin added 50,000--representing a remarkable 3% growth--while San Antonio grew by some 41,000 people.
"Texas's Jobless Rate Decreasing" from Texas A&M Real Estate Center
Both the U.S and the Texas labor markets hit bottom in August 2009 and since then have been losing jobs at decreasing rates. Texas's job loss rate has decreased from 4 percent in August 2009 to 2.3 percent in February 2010. Over the same period, the U.S. job loss rate has decreased from 5 percent to 2.5 percent.
The state's seasonally adjusted unemployment rate rose from 6.8 percent in February 2009 to 8.2 percent in February 2010, while the U.S. rate rose from 8.2 percent to 9.7 percent during the same period.
Only one Texas industry, education and health services, and the government sector had more jobs in February 2010 than in February 2009. Ten other industries experienced net job losses over the same period.
Four Texas metro areas had positive employment growth rates from February 2009 to February 2010. They were College Station-Bryan, Killeen-Temple-Fort Hood, Waco and McAllen-Edinburg-Mission. Twenty-two metro areas had net job losses.
The state's actual unemployment rate in February 2010 was 8.3 percent. Amarillo had the lowest unemployment rate followed by Midland, College Station-Bryan and Lubbock.
"Texas's Existing Home Sales Down, Prices Up in February" from Texas A&M Real Estate Center
A total of 13,064 existing single-family homes were sold in Texas last month, a 2 percent drop from February 2009, according to MLS data compiled by the Real Estate Center at Texas A&M University.
The median price was up 2 percent to $141,100 during the same period, and the state finished the month with a 6.9-month inventory of existing homes.
Austin - 1,276 sales (up 7% from last year)
$182,000 median price (down 3% from last year)
6.2 months' inventory
"Austin New Home Starts Jump" from Austin American Statesman
Central Texas builders started nearly 31 percent more homes in the first three months of this year compared with a year earlier, the first year-over-year quarterly increase in 3.5 years and a sign the local housing market may be turning around.
First-quarter starts also were up 14 percent from the fourth quarter of 2009.
"What Do Today's Homebuyers Want?" from Texas A&M Real Estate Center
In today's economy, home builders must pay close attention to what buyers say they prefer in a new home. The Real Estate Center's latest video, "What Homebuyers Want in 2010," features two experts with perspectives on buyer preferences.
Rose Quint is assistant vice president with the Survey Research Economics and Housing Policy Group for the National Association of Home Builders. Eliot Nusbaum is executive editor of Better Homes and Gardens.
"30 Days and Counting: Homebuyer Tax Credit Expires" from CNNMoney.com
Attention shoppers: You have barely a month left before the homebuyer tax credit expires. But depending on where you live, you might not want to rush out to buy. First-time homebuyers may qualify for up to $8,000, while those who are trading up could get as much as $6,500. But either way, buyers have to ink sales contracts by the end of April and close before July 1 to see the refund.