Blog, Market Updates

Austin Mortgage Update – Week Ending 12/26/08

What Did Interest Rates Do This Week?
** according to Freddie Mac **

30-yr Fixed – Lower
This Week: 5.14% — lowest since 1971
Last Week: 5.19%
1yr Ago: 6.17%

15-yr Fixed – Lower
This Week: 4.91%
Last Week: 4.92%
1yr Ago: 5.79%

5/1 ARM – Lower
This Week: 5.49%
Last Week: 5.60%
1yr Ago: 5.90%

Highlight of This Week’s Major Economic Reports

According to Freddie Mac, “Interest rates on 30-year fixed-rate mortgages eased for the eighth straight week and set another record low since Freddie Mac’s survey began in 1971. Real GDP growth fell 0.5% in the third quarter of the year, pulled down by the largest drop in consumer spending since the second quarter of 1980. The market consensus calls for an even larger decline in the last three months of the year.

The housing market, meanwhile, continues to contract nation-wide. Existing home sales in nation-wide (excluding condominiums and co-ops) fell 8.6% in November to 4.0 million houses (annualized) in November, representing the slowest pace since July 1997. Moreover, the median sales price fell 12.8% from November 2007, the largest 12-month decline since records began in January 1968, according to the National Association of Realtors®.”

What to Look for Next Week

Not much expected for the final week of 2008. Rates aren’t expected to sway much either way.

Short-Term Rate Outlook

Stable

This update brought to you by

Marie Funston
Senior Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757

and

Kevin Wilhelm, ABR, GRI, REALTOR®
Coldwell Banker United, Realtors
512-417-3915

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