Market Updates

Austin Mortgage Update – Week Ending 1/9/09

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

30-yr Fixed – Lower
This Week: 5.01% — lowest since 1971
Last Week: 5.10%
1yr Ago: 5.87%

15-yr Fixed – Lower
This Week: 4.62%
Last Week: 4.83%
1yr Ago: 5.43%

5/1 ARM – Lower
This Week: 5.49%
Last Week: 5.57%
1yr Ago: 5.63%

Highlight of This Week’s Major Economic Reports

Despite a recent uptick in Treasury yields, mortgage rates actually fell during the first full week of the New Year. One major catalyst driving this dip is the start of the Fed’s foray in purchasing mortgage-backed securities. The $500 billion budgeted for this shopping spree is helping to increase demand, which in turn has kept rates low.

Stocks also took a hit throughout the week as retailers and other corporations took turns issuing earnings warnings. This then led to a ‘flight to quality’ mad-rush over to the bonds markets, thereby further driving down rates.

And, lastly, there was the much-anticipated Employment Report. We knew it wasn’t going to be pretty. 524,000 jobs lost in December, which brought the final 2008 tally to 2.6 million. The unemployment rate now sits at a level we haven’t seen in 16 years – 7.2%. Despite the gloomy outlook for the job market, most economists do not anticipate the unemployment rate to hit double-digit levels, since the economy (i.e., GDP) is expected to make a comeback (albeit a modest one) in the second half of the year.

What to Look for Next Week

We’ll get to find out just how bad the worst holiday shopping season in years was when the latest Retail Sales figures come out on Wednesday. Then, of course, there are the all-important inflation gauges in the Consumer Price and Producer Price Indexes. Inflation is not expected to be an issue at all; it’s more so seeing if the numbers start to creep into deflationary territory, as many economists fear.

Short-Term Rate Outlook

Fractionally Lower

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

Contact Form:

1. Your Name(required)
2. Email(valid email required)
3. Phone #:(required)
4. Message

 

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Austin Mortgage Update – Week Ending 1/2/09

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

30-yr Fixed – Lower
This Week: 5.10% — lowest since 1971
Last Week: 5.14%
1yr Ago: 6.07%

15-yr Fixed – Lower
This Week: 4.83%
Last Week: 4.91%
1yr Ago: 5.68%

5/1 ARM – Lower
This Week: 5.57%
Last Week: 5.49%
1yr Ago: 5.78%

Highlight of This Week’s Major Economic Reports

Vacations and holidays led to minimal activity – and movement – in the mortgage markets this week. But, some “promising” news to wind down 2008: the drop in consumer confidence was less severe in December, and the final week of the month saw fewer unemployment filings.

What to Look for Next Week

The first full week of 2009 kicks off with a slew of economic data, but most eyes (and the direction of mortgage rates) will focus on December’s employment report. Results that convey continued weakness in the economy should help to keep mortgage rates near low levels.

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

Contact Form:

1. Your Name(required)
2. Email(valid email required)
3. Phone #:(required)
4. Message

 

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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

Contact Form:

1. Your Name(required)
2. Email(valid email required)
3. Phone #:(required)
4. Message

 

cforms contact form by delicious:days

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