San Jose Mortgage Rates and economy weekly commentary. I review last week and preview the week ahead for news items that can affect mortgage rates.
The Week that was:
- Freddie Mac reported in its Primary Mortgage Market Survey® that 30-year fixed-rate mortgage (FRM) averaged 4.98 percent with an average 0.6 point for the week ending January 28, 2010, down slightly from last week when it averaged 4.99 percent. The 5 year adjustable-rate mortgage (ARM) averaged 4.25 percent this week, with an average 0.6 point, down from last week when it averaged 4.27 percent.
- Q4 advance GDP was stronger than expected at +5.7% but will likely be revised lower when we get the preliminary revision next month.
- Treasury once again was able to get strong demand for $118B of notes sold last week.
- In my humble opinion, Obama's State of the Union speech was more fluff than substance in the aftermath of voter rebellion in Massachusetts; cost cutting and more job growth help but not specifics.
The Week that will be:
- This is going to be employment week with Jan data coming on Friday.
- No Treasury borrowing this week, however, on Wednesday Treasury will announce the following week's auctions for 3 yr notes, 10 yr notes and 30 yr bonds; likely about $80B in total.
Market volatility this week will likely be up a little with interday swings that will keep markets in check until the employment data on Friday morning.
Originally posted at - San Jose Home Loans, FHA Loans and Mortgage Rates.