Pending Home Sales Up
According to the National Association of Realtors (NAR), Pending Home Sales is up for the fifth month in a row. Pending home sales in June rose in all regions: up 7.1 percent in the South, 2.9 percent in the West, 0.8 percent in the Midwest and 0.4 percent in the Northeast. NAR's Pending Home Sales Index (PHSI) is released during the first week of each month. It is based on signed real estate contracts for existing single-family homes, condos and co-ops , and is a leading indicator of housing activity.
Interest Rates for August 5, 2009
Signs of economic growth were bad for Treasuries and MBS yesterday, and prices worsened. The worsening MBS price trend continued this morning until the release of the ISM Services index, which renewed investor interest in MBS. The ISM index is a national survey of purchasing managers' orders, production, employment, inventories, delivery times, prices, export orders, and import orders. The ISM index is considered an indicator of future economic growth. The economy is improving; not with a lot of growth in the near term, but the economic slide appears to be over. Consumers are still struggling, but the increasing consensus in the markets is that the recession is over.
Jobless claims and unemployment numbers come out Thursday and Friday. There is some speculation that the unemployment data that is announced on Friday will be weaker than expected and could improve mortgage prices - we will see.
Conforming Conventional 30Yr Fixed 5.500%
Conforming Conventional 15Yr Fixed 4.875%
Conforming Conventional 5/1 IO ARM 4.500%
FHA 30Yr Fixed 5.500%
* Above Conventional rate quotes are as of 8/05/09 on a Conventional $165,000 loan amount, primary residence at 80% loan to value, with a 720 FICO score. APR includes $1,200 in lender fees and 980 in title charges (title charges may vary). FHA Quote assumes a $125,000 loan amount and a 680 FICO score, and a 96.5% LTV. Documentation of income and assets required. No origination or discount points.