6/4/10 Mortgage Market Week-in-Review
June 07, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Relatively Unchanged
Last Week: 4.79%
Previous Week: 4.78%
1yr Ago: 5.29%
15-yr Fixed - Relatively Unchanged
Last Week: 4.20%
Previous Week: 4.21%
1yr Ago: 4.79%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
The stock market was hit hard again last week, with the Dow falling 204 points. On Friday alone, it tumbled 323 points as a result of a two-pronged hit to investor psyches. The first was increased concerns over the US economy being dragged down by the European debt crisis. The second hit came from the May employment report, which showed payrolls increased by 431,000 - but 411,000 of them were temporary census workers.
Despite the unemployment rate dropping to 9.7% (from 9.9%), it's clear that businesses are still holding off on hiring until they're certain the economy is recovering.
On the bright side, this at least bodes well for interest rates, which are likely to stay low while several hundred thousand are still out of work.
What to Look for This Week
Not much economic news this week, so the major "movers" to shake things up in the bond and stock markets will be the results of the upcoming Treasury auctions (weak demand could move rates higher) and news out of Europe (weak Euro could hamper the stock market and put downward pressure on rates).
Short-Term Rate Outlook
Stable
Stay Informed: What's in the News
"Census Lifts Job Count in May, Jobless Rate 9.7%" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/05/31/daily38.html?surround=lfn
"Project Could Bring Apartments, Offices and More to Southern Travis County" from Austin American Statesman
http://www.statesman.com/business/project-could-bring-apartments-offices-and-more-to-726453.html
"Survey: Home Purchase Tough for Many" from Dow Jones
A survey has found that nearly half of respondents believe they could never save enough money for a down payment on a home, the National Foundation for Credit Counseling reported Tuesday. The group, a nonprofit credit counseling organization, said its online survey of 2,000 people found 49% thought a down payment was forever out of reach and just 12% said they would not have any trouble coming up with a 20% down payment. One-fifth of the respondents said they would need a lower down payment than the standard 20%, and nearly as many said they would have to borrow to afford a down payment, no matter the size. The organization said the results are "discouraging news for the housing market in general — lenders, potential buyers as well as existing homeowners."
** based on Freddie Mac weekly average survey **
30-yr Fixed - Relatively Unchanged
Last Week: 4.79%
Previous Week: 4.78%
1yr Ago: 5.29%
15-yr Fixed - Relatively Unchanged
Last Week: 4.20%
Previous Week: 4.21%
1yr Ago: 4.79%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
The stock market was hit hard again last week, with the Dow falling 204 points. On Friday alone, it tumbled 323 points as a result of a two-pronged hit to investor psyches. The first was increased concerns over the US economy being dragged down by the European debt crisis. The second hit came from the May employment report, which showed payrolls increased by 431,000 - but 411,000 of them were temporary census workers.
Despite the unemployment rate dropping to 9.7% (from 9.9%), it's clear that businesses are still holding off on hiring until they're certain the economy is recovering.
On the bright side, this at least bodes well for interest rates, which are likely to stay low while several hundred thousand are still out of work.
What to Look for This Week
Not much economic news this week, so the major "movers" to shake things up in the bond and stock markets will be the results of the upcoming Treasury auctions (weak demand could move rates higher) and news out of Europe (weak Euro could hamper the stock market and put downward pressure on rates).
Short-Term Rate Outlook
Stable
Stay Informed: What's in the News
"Census Lifts Job Count in May, Jobless Rate 9.7%" from Austin Business Journal
http://austin.bizjournals.com/austin/stories/2010/05/31/daily38.html?surround=lfn
"Project Could Bring Apartments, Offices and More to Southern Travis County" from Austin American Statesman
http://www.statesman.com/business/project-could-bring-apartments-offices-and-more-to-726453.html
"Survey: Home Purchase Tough for Many" from Dow Jones
A survey has found that nearly half of respondents believe they could never save enough money for a down payment on a home, the National Foundation for Credit Counseling reported Tuesday. The group, a nonprofit credit counseling organization, said its online survey of 2,000 people found 49% thought a down payment was forever out of reach and just 12% said they would not have any trouble coming up with a 20% down payment. One-fifth of the respondents said they would need a lower down payment than the standard 20%, and nearly as many said they would have to borrow to afford a down payment, no matter the size. The organization said the results are "discouraging news for the housing market in general — lenders, potential buyers as well as existing homeowners."