Your weekly dose of economy and mortgage market news that affects mortgage rates for San Jose Home buyers and Home owners.
The Week that was:
Another bad week for the bond and mortgage markets. The 10 yr treasury note and mortgage rates have now increased 60 basis points in the past three weeks.
- Freddie Mac reported in its Primary Mortgage Market Survey® that 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.7 point for the week ending December 31, 2009, up from last week when it averaged 5.05 percent. The 5-year adjustable-rate mortgage (ARM) averaged 4.44 percent this week, with an average 0.6 point, up from last week when it averaged 4.40 percent. A year ago, the 5-year ARM averaged 5.57 percent.
- Nationally, the housing market is slowly improving. House prices rose for the fifth consecutive month in October to the highest level since the beginning of 2009, according to the S&P/Case-Shiller® 20-city composite index . Eleven of the cities experienced positive growth.
The Week that will be:
Its back to business providing a clearer outlook for the near term as markets will have more players after two weeks of very low volume.
- The week is anchored with Friday's Dec critical employment report. Through the week there are key economic releases everyday leading to Dec employment data.
- It is difficult to ignore that interest rates are likely to head higher through the year. Mortgage rates are likely headed to 6.0% in Q1. The ONLY caveat; if the prospects for a strong economic recovery falter rate markets would benefit. Expect this week to be volatile and possibly some slight improvement in rates but nothing close to a change in the bearish trend.
Happy New Year!
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