5/14/10 Mortgage Market Week-in-Review
May 16, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Lower
Last Week: 4.93%
Previous Week: 5.00%
1yr Ago: 4.86%
15-yr Fixed - Lower
Last Week: 4.30%
Previous Week: 4.36%
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
Rates benefited from weak trading in the stock markets as concern continued to mount over another global economic slowdown triggered by Europe's debt crisis.
At least, for now, we can relish in the good news of what remains a production-driven recovery for the US economy. Manufacturing is growing strong, and consumer demand has been showing signs of life in recent months. Retail Sales, for instance, rose a solid 0.4% in April.
As we continue to see growth in supply and demand, it'll be a matter of time before the jobs will follow, which in turn will help to boost consumer moods once again.
What to Look for This Week
The latest inflation situation and the release of the Fed's last meeting minutes will be the highlights of the economic calendar. Of course, the attention will continue to center on Europe's financial woes, so expect this 'uncertainty' to keep mortgage rates steady for the near term.
Short-Term Rate Outlook
Stable
Stay Informed: What's in the News
"Foreclosures Down 2 Percent from Last Year" from Forbes
http://www.forbes.com/feeds/ap/2010/05/13/general-materials-us-foreclosure-rates_7601686.html?boxes=Homepagetopnews
"Housing Prices to Rise 3-5% This Year: John Paulson" from CNBC
John Paulson, the hedge-fund manager who made $15 billion shorting the real estate market, said Monday that he expects housing prices to rise between 3 and 5 percent this year and another 8 to 12 percent in 2011. Paulson, who made his comments in a conference call with investors, said home ownership is the most affordable it has been in 50 years. He said residential real estate is 60 percent more affordable than it was at the peak of the housing bubble.
"Austin Foreclosures Increase 45% Year-Over-Year, Down from March" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/05/10/daily41.html?surround=lfn
"Austin Home Inventory Rises, Prices Fall" from Austin Business Journal
Austin reported the highest increase in residential real estate inventory between March and April, 8.6 percent, when compared with 26 U.S. metros, according to ZipRealty Inc.
A total 10,124 homes were for sale in Austin as of April 30 this year, compared to 10,076 listed a month before. The city reported a 4.7 decrease, however, from the same month last year when 8,881 houses were for sale. Homes reduced prices an average 1.81 percent.
The average inventory change across all cities included in the report was 2.59 percent increase between March and April and and negative 9.61 percent year-over-year.
The percent of homes for sale that reduced prices also increased from March to April, rising to 42.1 percent lowering price tags to 38.6 percent in March. About 42.6 percent of homes for sale lowered prices in April 2009.
** based on Freddie Mac weekly average survey **
30-yr Fixed - Lower
Last Week: 4.93%
Previous Week: 5.00%
1yr Ago: 4.86%
15-yr Fixed - Lower
Last Week: 4.30%
Previous Week: 4.36%
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
Rates benefited from weak trading in the stock markets as concern continued to mount over another global economic slowdown triggered by Europe's debt crisis.
At least, for now, we can relish in the good news of what remains a production-driven recovery for the US economy. Manufacturing is growing strong, and consumer demand has been showing signs of life in recent months. Retail Sales, for instance, rose a solid 0.4% in April.
As we continue to see growth in supply and demand, it'll be a matter of time before the jobs will follow, which in turn will help to boost consumer moods once again.
What to Look for This Week
The latest inflation situation and the release of the Fed's last meeting minutes will be the highlights of the economic calendar. Of course, the attention will continue to center on Europe's financial woes, so expect this 'uncertainty' to keep mortgage rates steady for the near term.
Short-Term Rate Outlook
Stable
Stay Informed: What's in the News
"Foreclosures Down 2 Percent from Last Year" from Forbes
http://www.forbes.com/feeds/ap/2010/05/13/general-materials-us-foreclosure-rates_7601686.html?boxes=Homepagetopnews
"Housing Prices to Rise 3-5% This Year: John Paulson" from CNBC
John Paulson, the hedge-fund manager who made $15 billion shorting the real estate market, said Monday that he expects housing prices to rise between 3 and 5 percent this year and another 8 to 12 percent in 2011. Paulson, who made his comments in a conference call with investors, said home ownership is the most affordable it has been in 50 years. He said residential real estate is 60 percent more affordable than it was at the peak of the housing bubble.
"Austin Foreclosures Increase 45% Year-Over-Year, Down from March" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/05/10/daily41.html?surround=lfn
"Austin Home Inventory Rises, Prices Fall" from Austin Business Journal
Austin reported the highest increase in residential real estate inventory between March and April, 8.6 percent, when compared with 26 U.S. metros, according to ZipRealty Inc.
A total 10,124 homes were for sale in Austin as of April 30 this year, compared to 10,076 listed a month before. The city reported a 4.7 decrease, however, from the same month last year when 8,881 houses were for sale. Homes reduced prices an average 1.81 percent.
The average inventory change across all cities included in the report was 2.59 percent increase between March and April and and negative 9.61 percent year-over-year.
The percent of homes for sale that reduced prices also increased from March to April, rising to 42.1 percent lowering price tags to 38.6 percent in March. About 42.6 percent of homes for sale lowered prices in April 2009.