30-yr Fixed – Slightly Lower

This Week: 5.09%
Last Week: 5.14%
1yr Ago: 5.01%

15-yr Fixed – Slightly Lower
This Week: 4.50%
Last Week: 4.54%
1yr Ago: 4.62%

Jumbo Fixed (Average 30-yr Fixed)
This Week: 5.875%
Last Week: 5.895%

Highlight of This Week’s Major Economic Reports

The first economic news of the year gave us the final significant results of 2009 – the December employment report. We all had hoped the end of the year would see no job losses, which would boost our spirits about an end to the “employment slump,” but it appears the job market remains in a still-fragile – but improving – state. The latest report from the Commerce Department showed that 85,000 more jobs were lost than were created last month. Although this figure was higher than the 8,000 loss economists were predicting, it still represents the lowest job loss rate we’ve seen in many, many months. Furthermore, it reinforces the belief/expectation that we’ll be seeing positive job growth before too long.

What to Look for Next Week

Inflation will take center stage, as well as the latest Fed survey of regional economic conditions. No major surprises expected, so mortgage rates should hold steady.

Short-Term Rate Outlook

Relatively Unchanged

Rate Updates courtesy of:
Marie Funston – Senior Mortgage Advisor with PHH Mortgage
(512) 750-7270

With rates at historic lows & the extended tax credit……now is a great time to buy!  For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.

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30-yr Fixed – Higher
This Week:  5.14%
Last Week:  5.05%
1yr Ago:  5.10%

15-yr Fixed – Higher
This Week:  4.54%
Last Week:  4.45%
1yr Ago:  4.83%

Jumbo Fixed (Average 30-yr Fixed)
This Week:  5.895%
Last Week:  5.875%

Highlight of This Week’s Major Economic Reports

2009 came to an end with mortgage rates on the rise, but to keep things in perspective – rates are comparable to where they were in late October, and much lower than this past summer’s peak.

One of the main factors that contributed to the uptick in rates was the Fed winding down its purchase of Treasuries, which allowed the natural laws of supply-and-demand to take a hold on the market.  Prices of bonds went up as a result, which causes yields (rates) to go up.

Nevertheless, as Freddie Mac, puts it:  “Although long-term mortgage rates rose for the fourth week in a row, they still remain affordable by historical standards.  Based on today’s median loan amount of $138,000, monthly principal and interest payments for a 30-year fixed-rate mortgage are close to one-third less than a decade ago when rates peaked at 8.6 percent in May 2000.  This translates into almost 50% less in interest payments over the full 30-year term.”

What to Look for This Week

Nothing like the state of the job market to grab everyone’s attention, and we get to find out how the last month of last decade fared with the release of the December employment report.  Economists expect the smallest drop in payrolls since the recession began two years ago, which – if true – we hope will signify that we’re nearing the end of this “employment slump.”

Short-Term Rate Outlook

Potentially Slightly Higher

Rate Updates courtesy of:

Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270

With rates at historic lows & the extended tax credit……now is a great time to buy!  For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.

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30-yr Fixed – Lower
This Week:  4.78% (lowest since April 30, 2009) – WOW!!!
Last Week:  4.83%
1yr Ago:  5.97%

15-yr Fixed – Slightly Lower
This Week:  4.29% (record low)
Last Week:  4.32%
1yr Ago:  5.74%

Jumbo Fixed (Average 30-yr Fixed)
Last Week:  5.75%
Previous Week:  5.75%

Highlight of This Week’s Major Economic Reports

Despite the nation’s economic challenges, there’s a lot to be thankful for this year.  For one, the housing market has started to see stabilization – thanks in combination to historic low interest rates and increasing affordability.  Then, there’s the first-time buyer tax credit, which was set to expire on December 1st and has since been extended to April 30th.  The original expiration helped to prop up home sales in October, which saw the fastest sales pace since October 2007, with existing home sales jumping over 10% and new home sales spiking 6.2% from September’s figures.

What to Look for Next Week

The latest unemployment picture will be framed with the release of November’s employment report.  Even though unemployment claims have slowly dropped in recent weeks, it’s expected we’ll see a rise in the 10% unemployment rate through the end of the year.

Short-Term Rate Outlook

Relatively Unchanged

Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270

With rates at historic lows & the extended tax credit……now is a great time to buy!  For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.

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30-yr Fixed – Lower
This Week: 5.12%
Last Week: 5.29%
1yr Ago: 6.47%

15-yr Fixed – Lower
This Week: 4.56%
Last Week: 4.68%
1yr Ago: 6.00%

Highlight of Last Week’s Major Economic Reports

Our rollercoaster ride for mortgage rates continues, as rates fell to three-month lows this past week. According to Freddie Mac,”U.S. Treasury bond yields fell nearly a quarter of a percentage point over the week, and other long-term yields followed suit. Interest rates on 30-year and 15-year fixed-rate mortgages fell to the lowest level since the end of May, while initial rates on 5/1 hybrid ARMs declined to levels not seen since January 2005.”

With the economy not getting worse – but still not close enough to getting better – and inflation being an “out of sight, out of mind” factor, mortgage rates will likely continue to seesaw their way through the Fall season. Beware, however, that the pressure is more on rates to go up, as the economy continues to rebound, and the Fed weaning itself off buying significant amounts of Treasury securities.

And, as the clock ticks for historic-low mortgage rates, buyers (led by first-time buyers) are dashing to take advantage. New Home Sales in July, for instance, rose a whopping 7%, putting the annualized rate 250K above economists’ forecasts. “Low mortgage rates are helping to reinforce the housing market. New construction on one-family homes rose for the fifth consecutive month in July to an annualized pace of almost 500,000 homes, the most since October 2008. In addition, homebuilder views of housing market conditions for the remainder of the year rose for the second month in a row in August to the most positive reading since June 2008, according to the National Association of Home Builders” (Freddie Mac).

What to Look for This Week

The economic calendar will be abuzz next week with a slew of data coming up, but New Home Sales data and the revised 2nd quarter GDP will likely be the big mover-and-shaker for rates.

Short-Term Rate Outlook

Stable to Potentially Higher

Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270

For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.

~ Kevin

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30-yr Fixed – Slightly Lower

This Week:  5.22%
Last Week:  5.25%
1yr Ago:  6.52%

15-yr Fixed – Slightly Lower
This Week:  4.63%
Last Week:  4.69%
1yr Ago:  6.10%

Highlight of ThisWeek’s Major Economic Reports

Is it safe to say that the recession (or at least the worst of it) is behind us?  Recent reports for construction spending, manufacturing, and factory orders revealed improvements in these sectors that would help to support this notion.  The biggest boost, however, came from the latest employment report, which showed a hugely surprising job loss figure of only 247K (the smallest number of job losses in a year).  Even though we’re still in the negative territory on jobs, the mere reduction in job losses was hailed as a plus for the economy’s road to recovery.

What to Look for This Week

Not much on the economic calendar, so expect the euphoria of last week’s employment report to help prolong the stock market rally, which does not bode well for mortgage rates.

Short-Term Rate Outlook

Potentially Higher

Rate Updates courtesy of:
Marie Funston
Senior Mortgage Advisor with Coldwell Banker Mortgage
(512) 750-7270

For more information regarding the Austin Housing Market, Current Mortgage Rates, or how I can help you…..please contact me directly.

~ Kevin

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30-yr Fixed – Slightly Lower
This Week:  4.78% (record lows!)
Last Week:  4.80%
1yr Ago:  6.06%

15-yr Fixed – Unchanged
This Week:  4.48%
Last Week:  4.48%
1yr Ago:  5.59%

Highlight of Last Week’s Major Economic Reports

The economy continues to show signs of stability.  A recovery isn’t here yet, but it’s at least starting to look like it’s within reach.

In a recent USA Today article, “The Federal Reserve … confirmed that the nerve-wracking economic free fall of recent months slowed in the past month.  But the economy continues to shrink and will remain “weak” for some time, the nation’s central bank said.  The policymaking Federal Open Market Committee voted to leave its benchmark interest rate unchanged at near zero and reiterated plans to buy up to $1.75 trillion in government securities in a bid to ease tight credit markets.  Its decision to stand pat followed an extended blizzard of crisis-fighting steps.”

Furthermore, according to Freddie Mac, “The housing market may be edging towards a bottom. Existing home sales stayed near its four-month average in March while new home sales were stronger than the market consensus. More importantly, the inventory of unsold new homes fell to the lowest number since January 2002. And, the S&P/Case-Shiller® 20-city composite index did not show a record year-over-year decline in February for the first time since December 2006. Finally, housing affordability hit record highs in the first quarter of this year, according to figures from the National Association of Realtors, which date back to January 1971.”

With growing talk of economic stabilization, consumer confidence seems to be picking up a bit in recent times.  This, despite the growing unemployment rate and the declining incomes, which has caused the nation’s savings rate to rise drastically over the past few months.

What to Look for This Week

Fed Chairman will be providing his latest sentiments on economic conditions, and the latest reading on the labor markets will be released.

Short-Term Rate Outlook

Stable to Potentially Higher

Stay Informed:  What’s in the News

“Finding Bottom: Where the Market Will Turn Around” from Ris Media

The end is near. When exactly, is hard to predict. It is also hard to predict what that end will look like. However, it is hard to escape the sense that some things will change forever. But what? Will law and order, if you can call this that, descend into chaos? Will nations withdraw from the global economy and seek self-sufficiency and protectionism? Will complex monetary systems that allow insider manipulation be replaced by barter? Will Brad and Angelina ever tie the knot? These are the great questions of our time.

For more information about the Austin Market, please contact me directly:

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30-yr Fixed – Slightly Lower
Last Week:  4.82%
Previous Week:  4.87%
1yr Ago:  5.88%

15-yr Fixed – Slightly Lower
Last Week:  4.48%
Previous Week:  4.54%
1yr Ago:  5.40%

Highlight of Last Week’s Major Economic Reports

Mixed signals continue to dominate the economic headlines, but overall the outlook continues to improve.

The Fed, for instance, noted “stabilizing” or “moderating” conditions in most regions, while weekly unemployment claims improved to a not-as-bad 610,000 last week.

The stock market has also been gaining steam, which is helping to bolster consumer confidence.

Prices are still falling.  The Producer Price Index dropped 1.2% last month and is down 3.6% from last year.  Before panic over deflation kicks in, however, do note that the Consumer Price Index fell by only 0.1% and is holding steady for the year.

What to Look for This Week

Home Sales figures will be the only major headliners, so expect more stock market activity to drive mortgage rates.

Short-Term Rate Outlook

Stable

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30-yr Fixed – Slightly Lower
This Week:  4.78% (record low rate since 1971)
Last Week:  4.85%
1yr Ago:  5.88%

15-yr Fixed – Slightly Lower
This Week:  4.52% (record low rate since 1991)
Last Week:  4.58%
1yr Ago:  5.42%

Highlight of Last Week’s Major Economic Reports

The stock market showed off a nice rally this week, finishing 440 points higher than where it started last Monday.  This was thanks in large part to the Financial Accounting Standards Board’s decision to relax its standards so that financial companies can change the way it values its assets.  The move is intended to unfreeze the credit markets, since it will make it easier for banks and other financial institutions to raise capital.

Meanwhile, the labor market continues to be bleak, as March posted an expected 663,000 in jobs lost, while the unemployment rate hit 8.5% — the highest since 1983.  The silver lining here is that the numbers at least aren’t getting worse.

What to Look for This Week

The stock market will continue to be the key driver of mortgage-rate activity, since there are no major economic data coming up.

Short-Term Rate Outlook

Stable to Potentially Higher

Stay Informed:  What’s in the News

“Texas Counties on the Grow” from Austin Business Journal

An analysis of the most recent U.S. Census report found that ten Texas counties were among the top 25 fastest-growing counties in the country between July 2007 and July 2008.

That put Texas ahead of every other state, including California, which had six counties in the top 25, and Arizona and North Carolina, which had two counties each.

The analysis was conducted by the Capital Area Council of Governments.

Texas counties that made the top 25 were Harris (No. 2), Tarrant (5), Bexar (10), Collin (12), Dallas (13), Travis (14), Fort Bend (18), Denton (21), Williamson (23) and Hidalgo (24).

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30-yr Fixed – Slightly Lower
This Week:  4.76%
Last Week:  4.77%
1yr Ago:  5.85%

15-yr Fixed – Slightly Lower
This Week:  4.53%
Last Week:  4.57%
1yr Ago:  5.34%

Highlight of This Week’s Major Economic Reports

Surprising news popped up in the housing market as existing home sales jumped an astounding 5.1% in February, while new home sales also beat market expectations with a 4.7% increase.  This is the first big jump in home sales in a few months, and it’s another encouraging sign that we may be nearing the bottom.

However, the bigger headline-nabber for the week came out of the Treasury Department with the announcement of the highly anticipated “toxic asset” plan, which is aimed at alleviating banks’ balance sheets by using up to $1 trillion in taxpayer and private investor funds to buy up such assets as subprime mortgages.  Whether the plan will work to increase the flow of lending again still remains in question, but this at least gives the government a strong weapon in tackling the ongoing financial crisis.

What to Look for Next Week

Very closely watched will be Friday’s employment report, which is expected to create another uptick in the nation’s unemployment rate.

Short-Term Rate Outlook

Stable

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15-yr Fixed – Lower
This Week:  4.47%
Last Week:  4.64%
1yr Ago:  5.27%

Highlight of This Week’s Major Economic Reports

My mortgage lenders have been proclaiming that the only thing that would cause rates to come down drastically again is if the Fed announced that it would buy up even more mortgage-backed securities; and, sure enough, that’s exactly what they did.  With a renewed commitment of $750 billion to buy up Fannie Mae and Freddie Mac – and even FHA-originated – loans, mortgage rates tumbled this week, as the Fed all but guaranteed to buy these debts (regardless of market conditions).  Mortgage rates fell to an average of 4.5% on Thursday, but it’s expected they’ll settle into 4.75-5.25% territory for the foreseeable future.

The Fed is willing (and able) to keep dishing out billions of dollars into the financial markets, since inflationary concerns remain relatively tamed.  The Producer Price Index posted only a modest gain of 0.1% in February, while the Consumer Price Index nudged higher by 0.4%.

From an economic standpoint, despite a lack of “warm and fuzzy” news to help us feel more confident about an economic recovery later this year, we do continue to see signs of stability across the spectrum.  Housing Starts, for example, was up 22% over last month, which was the first noticeable increase in recent history.  Manufacturing, consumer confidence, and weekly unemployment claims are all still in negative territory, but at least the numbers have curtailed somewhat recently, which at least gives us hope for a bottoming out.

What to Look for Next Week

February’s home sales data will be the main headliners for the week but will likely have little influence on the direction of mortgage rates.

Short-Term Rate Outlook

Stable

Stay Informed:  What’s in the News

“Under 5%, Mortgages May Be Near the Bottom” from The Wall Street Journal

The Federal Reserve is going to extraordinary lengths to push down long-term interest rates, including home-mortgage rates. But those hoping mortgage rates will fall sharply from current levels, already historically low, may be disappointed.

Mortgage firms Thursday were quoting rates averaging 4.75% on 30-year fixed-rate mortgages, according to Zillow.com, a real-estate information service. That is down from more than 5% two days ago and about 6% in mid-November. But further big declines will be hard to achieve, partly because the mortgage-lending market has grown less competitive in the past year as hundreds of small banks and independent mortgage lenders have collapsed. The big banks that dominate the market are eager to boost their profits margins, not give deeper bargains to consumers.

“Austin #2 Healthiest Housing Market for 2009” from BuilderOnline.com

Click Here For The Full Story

Nine years ago, during the tech bust, some builders felt that Austin was too crowded and left. The bloom is back on Austin’s yellow rose now; it moved up the leader board to become the sixth largest home building market last year. Job creation explains the move. While other markets lost employment, Austin added 17,400 jobs last year, 2.3 percent growth rate. It helps that Austin is home to both a major university, The University of Texas, and the state capital. Existing homes cost a little bit more in Austin than other Texas markets, roughly $188,600, but that’s still below the national average. Also, Austin is one of the few metro areas in the country where median prices actually rose in 2008–2.7 percent. Amazingly, Austin now generates more home building activity than Chicago, which has six times more people.

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