Weekly dose of economy and mortgage market news that affects mortgage rates for San Jose Home buyers and Home owners.
The Week that was:
- Freddie Mac weekly Primary Mortgage Market Survey® reported 30-year fixed-rate mortgage (FRM) averaged 5.06 percent with an average 0.7 point for the week ending January 14, 2010, down from last week when it averaged 5.09 percent. Last year at this time, the 30-year Fixed Rate Mortgage averaged 4.96 percent.
- The 5-year adjustable-rate mortgage (ARM) averaged 4.32 percent this week, with an average 0.6 point, down from last week when it averaged 4.44 percent. A year ago, the 5-year ARM averaged 5.25 percent.
- Economic data last week confirmed once again that inflation fears are way overblown; Dec CPI up just 0.1%. Factory use and industrial production improved again as the economy is bottoming, at least based on recent reports. Somewhat disturbing, and adding to last week's bounce in rates; Dec retail sales were lower, down 0.3% in a month.
- Consumers, the housing industry and the unemployment rate, now at a whopping 17% when discouraged workers are taken into account; not the building blocks for a sustained recovery.
The Week that will be:
- Not much in the way of economic measurements this week; Dec housing starts and building permits and the Dec producer price index, prices on wholesale products, are the headliners this week.
- As long as the outlook for economic recovery remains as solid as it is currently lower mortgage rates are highly unlikely. We suggest taking advantage of any further decline in rates.
Mortgage Broker/Banker | San Jose, CA
(408) 615-0655 | Shashank@ArcusLending.com
Ranked among Top 150 Loan Officers and Top 40 under 40 Most Influential Mortgage Professionals in the Country