4/23/10 Mortgage Market Week-in-Review
April 27, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Unchanged
Last Week: 5.07%
Previous Week: 5.07%
1yr Ago: 4.80%
15-yr Fixed - Slightly Lower
Last Week: 4.39%
Previous Week: 4.40%
1yr Ago: 4.48%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
Thanks in large part to the tax credit, the housing market has started seeing signs of life again. Existing Home Sales, for instance, nudged up 6.8% higher in March, to levels we haven't seen in several months. More importantly, prices seem to be showing signs of stabilization as well with the national average coming in positive for the second time in three months. Meanwhile, New Home Sales showed an even more impressive spike last month with a whopping 27% increase in sales, presenting the highest figures we've seen in seven months.
What to Look for This Week
The Fed's regular monthly meeting will be the main draw for investors, as well as our first peek at 2010's first quarter economic growth results.
With the economy still slowly on the path to recovery and inflation a present-day non-issue, it's not expected that the Fed will make any changes to its policy. The question will be more so 'when' they will start to raise short-term interest rates once again, and early bets are for July.
Short-Term Rate Outlook
Relatively Stable
Stay Informed: What's in the News
"The Best Cities For Jobs" from Forbes
Our list of best places among big cities is dominated this year, as last, by Texas, with the Lone Star State producing fully half of our top 10. This year, like last, the No. 1 big city (those with a more than 450,000 non-farm jobs) was Austin, Texas, which enjoys the benefits of being both the state capital and the home to the University of Texas, as well as a large, and growing, tech sector.
"Report: Austin Ranks Low in Affordability" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/04/19/daily21.html?ed=2010-04-20&ana=e_du_pub
"Austin Home Sales Increase 27%" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/04/19/daily20.html
"A Shorter Wait to Buy After Delinquency" from Inman News
To encourage distressed borrowers to agree to deeds-in-lieu of foreclosure, Fannie Mae is reducing the waiting period -- from four years to two years -- for them to become eligible for a new mortgage. The new policy, which will apply to loan applications submitted after June 30, requires a minimum downpayment of 20 percent from borrowers who have agreed to a deed-in-lieu within the past two years. Borrowers with a deed-in-lieu in the past two to four years will be required to put 10 percent down to be considered for a Fannie Mae-backed loan.
"Report: Austin 3rd Best City to Relocate to" from Austin Business Journal
Austin was ranked the third best city to move to in the United States, according to a RelocateAmerica.com report.
The relocating resources website listed Austin just behind Huntsville, Ala. and Washington D.C. for overall best place to move. Those listed were nominated by RelocateAmerica.com users and then selected by the site's editorial team. The company also analyzed reviews, interviewed residents and looked at economic, environmental, education, crime, employment, and housing data.
The Texas State capital took the No. 2 spot on the "America's Top 100 Places to Live for 2010" report for recovery, among others less impacted by recession and therefore expecting a swift recovery. Huntsville, Ala. was ranked first on that list.
Austin was also listed as the fifth-best "earth-friendly" location behind Portland, Ore. (No. 1); Boston, Mass. (No. 2); Madison, Wis. (No. 3); and Boulder, Colo. (No. 4).
** based on Freddie Mac weekly average survey **
30-yr Fixed - Unchanged
Last Week: 5.07%
Previous Week: 5.07%
1yr Ago: 4.80%
15-yr Fixed - Slightly Lower
Last Week: 4.39%
Previous Week: 4.40%
1yr Ago: 4.48%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
Thanks in large part to the tax credit, the housing market has started seeing signs of life again. Existing Home Sales, for instance, nudged up 6.8% higher in March, to levels we haven't seen in several months. More importantly, prices seem to be showing signs of stabilization as well with the national average coming in positive for the second time in three months. Meanwhile, New Home Sales showed an even more impressive spike last month with a whopping 27% increase in sales, presenting the highest figures we've seen in seven months.
What to Look for This Week
The Fed's regular monthly meeting will be the main draw for investors, as well as our first peek at 2010's first quarter economic growth results.
With the economy still slowly on the path to recovery and inflation a present-day non-issue, it's not expected that the Fed will make any changes to its policy. The question will be more so 'when' they will start to raise short-term interest rates once again, and early bets are for July.
Short-Term Rate Outlook
Relatively Stable
Stay Informed: What's in the News
"The Best Cities For Jobs" from Forbes
Our list of best places among big cities is dominated this year, as last, by Texas, with the Lone Star State producing fully half of our top 10. This year, like last, the No. 1 big city (those with a more than 450,000 non-farm jobs) was Austin, Texas, which enjoys the benefits of being both the state capital and the home to the University of Texas, as well as a large, and growing, tech sector.
"Report: Austin Ranks Low in Affordability" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/04/19/daily21.html?ed=2010-04-20&ana=e_du_pub
"Austin Home Sales Increase 27%" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/04/19/daily20.html
"A Shorter Wait to Buy After Delinquency" from Inman News
To encourage distressed borrowers to agree to deeds-in-lieu of foreclosure, Fannie Mae is reducing the waiting period -- from four years to two years -- for them to become eligible for a new mortgage. The new policy, which will apply to loan applications submitted after June 30, requires a minimum downpayment of 20 percent from borrowers who have agreed to a deed-in-lieu within the past two years. Borrowers with a deed-in-lieu in the past two to four years will be required to put 10 percent down to be considered for a Fannie Mae-backed loan.
"Report: Austin 3rd Best City to Relocate to" from Austin Business Journal
Austin was ranked the third best city to move to in the United States, according to a RelocateAmerica.com report.
The relocating resources website listed Austin just behind Huntsville, Ala. and Washington D.C. for overall best place to move. Those listed were nominated by RelocateAmerica.com users and then selected by the site's editorial team. The company also analyzed reviews, interviewed residents and looked at economic, environmental, education, crime, employment, and housing data.
The Texas State capital took the No. 2 spot on the "America's Top 100 Places to Live for 2010" report for recovery, among others less impacted by recession and therefore expecting a swift recovery. Huntsville, Ala. was ranked first on that list.
Austin was also listed as the fifth-best "earth-friendly" location behind Portland, Ore. (No. 1); Boston, Mass. (No. 2); Madison, Wis. (No. 3); and Boulder, Colo. (No. 4).