Monday, November 17, 2008

Mortgage RATES & Market UPDATE

After weeks of sizable swings in mortgage rates, last week saw rates move significantly less. Most rates drifted downward as evidence of economic slowing mounted. Retail sales dropped for the fourth month in a row, plummeting by a record 2.8%.

This week was also filled with announcements regarding numerous government programs related to housing. Both the Federal Housing Finance Agency and the Federal Deposit Insurance Corporation announced programs offering bounties to mortgage servicing companies for modifying troubled mortgages. New RESPA rules also began implementation, along with the announcement that the $700 billion dollar Troubled Asset Relief Program would not be used to buy toxic mortgage debt off financial companies' books.

While financial markets may continue to be rocked on a daily basis, we hope to see mortgage rates remain calmer again this week. If data from the Industrial Production numbers and both the CPI and PPI point to economic slowing with lower inflationary pressures rates my continue downward.

Freddie Mac's Primary Mortgage Market Survey
30 Year Fixed - 6.14%
15 Year Fixed - 5.81%
One Yr ARM - 5.25%

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