Ninth Straight Week 30 yr fixed mortgage sets records

For the ninth straight week, 30-year, fixed-rate mortgages set a new record low. While there was a bit
more pessimistic news about the economy, not everything was sour. Industrial Production posted a
full percentage point gain last month, with manufacturing kicking back upward. Perhaps part of the
drop in rates was due to the expectation that the second estimate for GDP, which is due this week, will
reveal an even weaker economy than the previous estimate. In addition to an increase in refinance
activity, there was some welcome news for the mortgage industry. In an ongoing national survey of
senior loan officers, respondents are being to see some loosening of underwriting criteria in the private
lending market for both residential and commercial borrowers.
Could we see another record low for mortgage rates this week? Some technical factors at work last
week certainly point to a reasonable likelihood. Of course, more economic news highlighting slowing
growth with probably be enough to push rates just a little further downward.