6/11/10 Mortgage Market Week-in-Review
June 14, 2010
What Did Interest Rates Do Last Week?
** based on Freddie Mac weekly average survey **
30-yr Fixed - Lower
Last Week: 4.72%
Previous Week: 4.79%
1yr Ago: 5.59%
15-yr Fixed - Slightly Lower
Last Week: 4.17%
Previous Week: 4.20%
1yr Ago: 5.06%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
Mortgage rates moved to new lows with another volatile week in the financial markets. Of course, the primary concern revolves around the outlook for the global economy and the possibility of Europe's debt woes dragging the US into another recession.
Some of this fear, thankfully, was abated when Greece announced that the emergency loans it received will cover its obligations and help the country avoid defaulting on loans. For the week, this catapulted the Dow (stock market) 279 points higher. If the stock markets continue this upbeat trend, we'll see the demand for Treasuries start to wane, which will inevitably push interest rates higher.
What to Look for This Week
Expect continued volatility in the stock and bond markets to drive mortgage rates this week. The most eye-catching news will revolve around inflation - the Producer Price Index on Wednesday and the Consumer Price Index on Thursday. As long as inflation remains fairly tepid, we can expect an environment of continued lower rates, since the Fed won't feel added pressure to raise rates anytime soon.
Additionally, we hope to hear more about the revived talk in Washington to extend the home-buyer tax credit through September, as lenders are struggling to close loans in time to meet the June 30th deadline.
Short-Term Rate Outlook
Relatively Stable
** based on Freddie Mac weekly average survey **
30-yr Fixed - Lower
Last Week: 4.72%
Previous Week: 4.79%
1yr Ago: 5.59%
15-yr Fixed - Slightly Lower
Last Week: 4.17%
Previous Week: 4.20%
1yr Ago: 5.06%
Jumbo Fixed (Average 30-yr Fixed)
Last Week: 5.50%
Previous Week: 5.50%
Highlight of Last Week's Major Economic Reports
Mortgage rates moved to new lows with another volatile week in the financial markets. Of course, the primary concern revolves around the outlook for the global economy and the possibility of Europe's debt woes dragging the US into another recession.
Some of this fear, thankfully, was abated when Greece announced that the emergency loans it received will cover its obligations and help the country avoid defaulting on loans. For the week, this catapulted the Dow (stock market) 279 points higher. If the stock markets continue this upbeat trend, we'll see the demand for Treasuries start to wane, which will inevitably push interest rates higher.
What to Look for This Week
Expect continued volatility in the stock and bond markets to drive mortgage rates this week. The most eye-catching news will revolve around inflation - the Producer Price Index on Wednesday and the Consumer Price Index on Thursday. As long as inflation remains fairly tepid, we can expect an environment of continued lower rates, since the Fed won't feel added pressure to raise rates anytime soon.
Additionally, we hope to hear more about the revived talk in Washington to extend the home-buyer tax credit through September, as lenders are struggling to close loans in time to meet the June 30th deadline.
Short-Term Rate Outlook
Relatively Stable