Weekly Mortgage Update – a little late

Last week started out with rates at historic lows as investors started to speculate that we were headed towards a deflationary environment and that we might see more Fed intervention.  Not so as the Fed comments this week showed that they feel the economy is slowly recovering and they do not intend to intervene.

Then Friday the much anticipated unemployment data came out and, while the headline unemployment rate increased due to people who had stopped looking for a while coming back into the job market, the more closely watched Non-Farm Payroll numbers were revised to much better than consensus estimates.  The Private Sector also added more jobs than expected.  All of this pulled rates back into the trading channel we’ve been in for the past month,  AND we have broken through some technical levels that indicate rates might rise in the near future as consumer sentiment is improving and the Case-Schiller index showed continued recovery in nationwide house prices.  Stay tuned.

State Bond Money is still available, but at this point it is scheduled to expire on the 1^st of October, therefore must close by the 1^st of October so if you have borrowers interested in the program they need to have a contract quickly.  I am thinking that they will probably extend the program because they still have plenty of money left, almost $17,000,000 with a rate of 5.25% and 3.5% Down Payment Assistance.

This week 30 yr. fixed rates remained between 4.125 and 4.375% depending on program, credit and points.

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tclay@wrstarkey.com

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