The Week in Review:

It was a fairly quiet week last week with mixed news on the economic front.  On the one hand, retail sales were much better than expected while on the other hand the consumer sentiment report was lower than expected.  So we are out there buying stuff at a greater than expected pace, but if you ask the general public they don't feel good about the economic outlook.  I'm not sure which one is correct and the bond market reacted similarly....we need more information.  As a result, the market was flat and we saw little movement in mortgage rates last week.

The Week Ahead:

The bond market is currently trading around the 200 day moving average and as I have mentioned in the past this is either a difficult floor of support or a difficult ceiling of resistance.  It will take several consistent reports to move the market away from the 200 day average.  Again, poor economic news is generally good for the bond market and in turn, mortgage interest rates.  This week we will have reports on Manufacturing, Housing, and Consumer Inflation.  None of them are market movers by themselves however, if they are consistent in one direction this week we may see the market move!

I am recommending that your clients are locking this week.

Rates:

Conforming ($417,000 or less)

30 yr Fixed                    6.25%

5yr ARM                       5.875%

7yr ARM                       6%

Jumbo (Greater than $417,000)

30 yr Fixed                    6.5%

3yr ARM                       6.25%

5yr ARM                       6.125%

7yr ARM                       6.5%

Justin Whitney

Home Loan Consultant

C- 843-270-8366

F- 866-650-0216

justin_whitney@countrywide.com

www.loansbyjustin.com