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:  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
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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