Mortgage Rates and What May Move Them This Week: July 6, 2010.

Reblogger Catherine Chaudemanche - Edison & Central NJ
Real Estate Agent with Metuchen Keller Williams Elite Realty / Middlesex County, NJ


Original content by Robert Rauf NMLS 248937

 Yes, you heard it Correctly: We have hit Record Lows for Mortgages

Last week interest rates continued to improve slightly with Fannies gaining 9/32nds for the week keeping rates at historically low levels. All I can say is "WOW" every time I lock in a 30 year fixed rate in the 4's.  My advice has been to lock it in and don't look back, these are truly generational lows that we probably will not see again. The minute that the economy shows sustainable growth rates will pop like the fireworks you saw last weekend.  Last weeks "biggie was the employment report which had some mixed news. At first it looked good (which is bad for rates). The employment rate went down while the economy lost 125k jobs... digging a little you can see that people fell off the unemployment rolls and gave up looking for jobs, so the reality is that the employment picture is still far from Rosy.

Last week we also saw an extension of the NFIP, and the closing date for the first time buyers that missed the June 30 deadline was extended as well, So there is some good news. Lets just hope that our law makers in DC stop tossing around the political foot balls and get the job done. The Flood Extension was JUST an extension, and we went without flood insurance being available for 2 months as that foot ball was tossed about after the previous extension expired, and as of 9/30/2010 we will not have flood insurance again unless they fix it... So pay attention, there is a lot of Great Real Estate in this country that requires flood insurance to close.

This weeks calendar is a short one, and not just because Monday was a Federal holiday.  Here is what we have in store for the week

  • Tuesday July 6: Institute of supply Management, Service Sector, Expected at 55.0%. This number was expected to be down a bit since last month, but it actually came in much lower at 53.8% Keep in mind that we are a service based economy, so that is a big hit to 90% of our economic base. On the news we have mortgages trading up a bit and may see some small improvements to rates
  • Wednesday July 7: a no news day
  • Thursday July 8: Initial Jobless claims expected down 7,000. This keeps the jobless number around 465k, well above the 400k we would need to see as any sign of a solid jobs number. It is not likely that this will be a market mover with the holiday weekend and seasonal adjustments that will make interpretations of the report confusing.
  • Friday July 9: May Wholesale Inventories expected +0.4%. This is a bit stale, and matches last month, it is not a likely market mover.

That's it, just 3 things??? I told you it was a quiet calendar this week!  It's too darn hot out for Economic data anyway. 

Last week we hit record lows for mortgage rates for both 15 and 30 year fixed rates. It is possible we might see that improve a little bit, but as one of my favorite analysts said: "Trees don't grow to the sky, and rallies don't last forever". We are getting to a point that it is scary, and as I mentioned above it might just explode like fireworks. There is not much room for rates to come down any further, and the only ones that can actually time the bottom have a working crystal ball, A time Machine, or some dumb luck.  As far as I am aware, the third option is the only one available to us today, so Lock-Em in, and don't look back. Rates at these levels will be talked about for years to come, and you can say: "I remember when they were giving mortgages away at 4%"

If you have any questions, or need a Mortgage, please do not hesitate to give me a call or to shoot me out an email.

Have a Great week! 


Robert Rauf

Mortgage Banker

NMLS ID# 248937   or my blog:

(732)223-1630 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

Real Estate Mortgage Network Inc.




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Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Great information!

Thank you!

Jul 07, 2010 12:21 AM #1
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Thank you for the Re-Blog Cathy! I hope you are having a great week

Jul 07, 2010 03:31 AM #2
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Catherine Chaudemanche - Edison & Central NJ

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