Daily Real Estate News | October 10, 2008
30-Year Mortgage Rates Fall Under 6%
Freddie Mac reports a drop in the 30-year fixed mortgage rate to 5.94 percent during the week ended Oct. 9, marking the first decrease in three weeks.
The 15-year fixed rate slipped to 5.63 percent from 5.78 percent the previous week.
Meanwhile, the five-year adjustable mortgage rate dropped a notch to 5.9 percent from 6 percent; and the one-year ARM dipped slightly to 5.15 percent.
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Marina Vialtsina
Showing posts with label mortgage rate reaction. Show all posts
Showing posts with label mortgage rate reaction. Show all posts
Wednesday, October 15, 2008
Sunday, June 1, 2008
30-Year Rates Climb Past 6%
Freddie Mac reports a jump in the 30-year fixed mortgage rate to 6.08 percent during the week ended May 29 from 5.98 percent the prior week, marking a two-month high triggered by investor concern over inflation.
The 15-year mortgage rate climbed to 5.66 percent from 5.55 percent over the same period, while the five-year adjustable rate rose slightly to 5.62 percent from 5.61 percent.
However, the one-year ARM slipped to 5.22 percent from 5.24 percent.
In the event of worsening inflationary pressures, Federal Reserve Bank of Dallas President Richard Fisher says, "I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic [economy]."
Source: San Francisco Chronicle (05/30/08)
The 15-year mortgage rate climbed to 5.66 percent from 5.55 percent over the same period, while the five-year adjustable rate rose slightly to 5.62 percent from 5.61 percent.
However, the one-year ARM slipped to 5.22 percent from 5.24 percent.
In the event of worsening inflationary pressures, Federal Reserve Bank of Dallas President Richard Fisher says, "I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic [economy]."
Source: San Francisco Chronicle (05/30/08)
Wednesday, November 14, 2007
Wednesday's bond market...
Wednesday's bond market has opened in negative territory despite weaker than expected economic news. The stock markets are relatively calm with the Dow up 20 points and the Nasdaq down 1 point. The bond market is currently down 8/32, which will likely push this morning's mortgage rates higher by approximately .125 of a discount point.
The Commerce Department gave us October's Retail Sales figures early this morning, saying that sales rose 0.2% last month. This matched forecasts, therefore, has not had a significant impact on the bond market or mortgage rates today.The Labor Department posted October's Producer Price Index (PPI). They said that the overall index rose 0.1%, while the more important core data reading remained unchanged from September's levels. These readings were 0.2% below forecasts, which is very good news for bonds and mortgage rates. However, the bond market has failed to react to the news as it was expected to, keeping this morning's mortgage rates from improving.October's Consumer Price Index (CPI) will be released early tomorrow morning. This index is similar to today's PPI, except it measures inflationary pressures at the more important consumer level of the economy. The overall portion is expected to show a rise of 0.3% while the core data is expected to rise 0.2%. If we see weaker than expected readings as we did in today's report, we should see mortgage rates improve tomorrow.
The Commerce Department gave us October's Retail Sales figures early this morning, saying that sales rose 0.2% last month. This matched forecasts, therefore, has not had a significant impact on the bond market or mortgage rates today.The Labor Department posted October's Producer Price Index (PPI). They said that the overall index rose 0.1%, while the more important core data reading remained unchanged from September's levels. These readings were 0.2% below forecasts, which is very good news for bonds and mortgage rates. However, the bond market has failed to react to the news as it was expected to, keeping this morning's mortgage rates from improving.October's Consumer Price Index (CPI) will be released early tomorrow morning. This index is similar to today's PPI, except it measures inflationary pressures at the more important consumer level of the economy. The overall portion is expected to show a rise of 0.3% while the core data is expected to rise 0.2%. If we see weaker than expected readings as we did in today's report, we should see mortgage rates improve tomorrow.
Thursday, November 1, 2007
Quarter Rate Cut
Today's FOMC adjournment brought us the expected quarter point rate cut that was expected by many, but the post-meeting statement created concern about inflation. The Fed referenced the weak housing market as a contributing factor to the change in short-term interest rates, but also indicated that inflation remains an issue, particularly with the high energy and oil prices we are currently seeing.The move and comments leads many to believe that the Fed will not make another rate cut in the near future.
The stock markets have surprisingly reacted well to the news with the Dow up 131 points and the Nasdaq gaining 35 points. However, the bond market and mortgage rates have not faired so well. The bond market is currently down 23/32, which will likely revise this afternoon's mortgage rates higher by approximately .25 of a discount point from this morning's rates.
This morning's release of the 3rd Quarter Gross Domestic Product (GDP) revealed a 3.9% annual pace of economic growth, exceeding forecasts of a 3.1% rate. This means that economic activity was moderately stronger than expected. However, offsetting that was good news in the key inflation reading within the report. It showed a significantly lower reading than was expected, indicating inflationary pressures were well under control.
Also posted this morning was the 3rd Quarter Employment Cost Index (ECI), which tracks employer costs for salaries and benefits. It showed a 0.8% that was slightly lower than forecasts. This can also be taken as good news for bonds and mortgage pricing because it eases wage inflation concerns.
Now that the Fed meeting is behind us, we have to turn our attention to the remaining economic news of the week. There are a couple of high-impact reports still left to be posted that may significantly affect the markets and mortgage rates. September's Personal Income and Outlays report will be posted early tomorrow morning. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. Analysts are expecting to see increases of 0.4% in income and 0.4% in outlays.
The Institute for Supply Management (ISM) will release their Manufacturing Index for October late Thursday morning. This index measures manufacturer sentiment and can have a considerable impact on the financial markets and mortgage rates. Current forecasts call for a decline from September's 52.0 reading. If we get a reading below 51.5, we should see mortgage rates drop tomorrow morning. On the other hand, a reading above 51.5, indicating manufacturing activity may be stronger than thought, could fuel a stock rally and drive mortgage rates higher.
If I were considering financing/refinancing a home, I would....Float if my closing were taking place within 7 days...Float if my closing were taking place between 8 and 20 days...Float if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
The stock markets have surprisingly reacted well to the news with the Dow up 131 points and the Nasdaq gaining 35 points. However, the bond market and mortgage rates have not faired so well. The bond market is currently down 23/32, which will likely revise this afternoon's mortgage rates higher by approximately .25 of a discount point from this morning's rates.
This morning's release of the 3rd Quarter Gross Domestic Product (GDP) revealed a 3.9% annual pace of economic growth, exceeding forecasts of a 3.1% rate. This means that economic activity was moderately stronger than expected. However, offsetting that was good news in the key inflation reading within the report. It showed a significantly lower reading than was expected, indicating inflationary pressures were well under control.
Also posted this morning was the 3rd Quarter Employment Cost Index (ECI), which tracks employer costs for salaries and benefits. It showed a 0.8% that was slightly lower than forecasts. This can also be taken as good news for bonds and mortgage pricing because it eases wage inflation concerns.
Now that the Fed meeting is behind us, we have to turn our attention to the remaining economic news of the week. There are a couple of high-impact reports still left to be posted that may significantly affect the markets and mortgage rates. September's Personal Income and Outlays report will be posted early tomorrow morning. This data gives us an indication of consumer ability to spend and current spending habits. It is important to the markets because consumer spending makes up two-thirds of the U.S. economy. Rising income generally indicates that consumers have more money to spend, making economic growth more of a possibility. This is bad news for the bond market and mortgage rates because it raises inflation concerns, making long-term securities such as mortgage related bonds less attractive to investors. Analysts are expecting to see increases of 0.4% in income and 0.4% in outlays.
The Institute for Supply Management (ISM) will release their Manufacturing Index for October late Thursday morning. This index measures manufacturer sentiment and can have a considerable impact on the financial markets and mortgage rates. Current forecasts call for a decline from September's 52.0 reading. If we get a reading below 51.5, we should see mortgage rates drop tomorrow morning. On the other hand, a reading above 51.5, indicating manufacturing activity may be stronger than thought, could fuel a stock rally and drive mortgage rates higher.
If I were considering financing/refinancing a home, I would....Float if my closing were taking place within 7 days...Float if my closing were taking place between 8 and 20 days...Float if my closing were taking place between 21 and 60 days...Float if my closing were taking place over 60 days from now...This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.
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