Mortgage Trends This Week

[Emily Smith]

Hi,

The year began with mortgage rates continuing to register a slight increase. The average for 30-year fixed rate mortgage increased by two basis points closing at 6.29% whereas the increase for hybrid 5/1 adjustable rate mortgage increased by nearly six basis points to register at 6.17%.

Inflation is not at desired levels and it is suggested that many sectors of the economy will continue to function below par for the greater part of this year. With the economic fundamentals maintaining an even course there are no indications of changes in Fed rates.

There is a sharp decline in residential construction and unless existing inventories are cleared there cannot be scope for further growth. Good levels of employment and a predictable economy influence the movement of mortgage rates. The increase in rates is only marginally higher than the recent lows with a likelihood of a further rise by at least two basis points in the coming week.

Thanks and Regards
Rob Thomos