All Forum Posts by: Emily Smith

:welcome: Hi,

After the unexpected fall in mortgage rates, there has been no change in the average 30-year FRMs, which closed at 6.35%. Average 5/1 ARMs, on the other hand, fell by four basis points to close at 6.14%.
Progress in the housing sector has been rather uneven. Further growth will depend on depletion of existing stocks and addition to the inventory. The rate of depletion has been gradual even when housing prices are declining. This is due to the influence of unfavorable factors on housing and mortgage markets. One such factor is the consequence of borrowers defaulting on loans such as sub prime mortgages. Such influences do not have a positive effect and prevent the emergence of a clear picture on future trends.
The week that saw mortgage rates fall had also seen an increased investment in bonds, over stocks. Subsequently investments in stocks rose once again. This could also have contributed to preventing mortgage rates from falling further. The following week, however, may witness a further fall by at least a couple of basis points.

Cheers
Rob Thomos :lol:

Mortgage rates changed course last week with average 30-year FRMs falling by as many as ten basis points to close at 6.35%, and average 5/1 ARMs slipping by six basis points, to close at 6.18%.

This reversal in average mortgage rates cannot be taken as tangible indication of a downward trend. The main reason being that factors that contributed to an increase in mortgage rates in the first place, such as wage-induced inflation and employment patterns, remain largely unchanged. One other factor that could have influenced mortgage rates in the past week may have been the veering of investments from stocks into bonds.

Inflationary pressures still continue to cast its shadow on the economy. That inventory stocks are gradually getting depleted and needs to be restocked, spells more activity for the manufacturing sector. Further activity in the housing sector will also depend on existing inventories and trend in mortgage rates. In the meanwhile, surveys indicate that nearly half of all mortgage applications continue to be for refinancing.

Cheers
Rob Thomos

:welcome:
Hi,

Mortgage rates continue to rise steadily with the 30-year FRM increasing by seven basis points to close at 6.45% and 5/1 ARM increasing by five basis points to close at 6.24%.

Though the economy is more buoyant, from all parameters it is apparent that inflation has not yet reached a point where it can be contained. The rate of growth is not evenly spread with some sectors faring better than the others.

One of the effects of an upward looking economy is reflected in the rise in mortgage rates. Nearly half of all mortgage applications are for refinancing, which continues to be a popular option. But an increase in activity in the housing sector can only be apparent once the existing inventories are cleared.

Studies indicate that mortgage rates may remain steady this week without any large increases.

Thanks and Regards
Rob Thomos

Hi,

The average rate for 30-year FRM increased by 3 basis points to close at 6.38% whereas the rates for 5/1 ARM slid down by a single point to close at 6.19%.
When mortgage rates were favorable and lending terms not so stringent buying homes still remained out of reach for many because of steep prices. But as property prices have remained more or less stable since last year in relation to increase in income, affordability can improve with better financing options.
Mortgage rates, on the other hand, have been steadily rising over the past weeks with no signs of the trend being reversed. If the rates continue to rise, it can slow down demand for refinancing which has so far been nearly 50% of all mortgage applications.

Cheers
Rob Thomos
:welcome:

Hi,

Bond yields and mortgage rates have been influenced by a reviving economy and price pressure. Mortgage rates have been on the rise and will continue to follow similar patterns. Average 30-year Fixed Rate Mortgage registered an increase by seven basis points to close at 6.35%, while 5/1 ARM increased by two basis points to close at 6.20%.

Thanks and Regards
Rob Thomos

Thank you for your response.
I’m glad you liked the analysis.

Emily.

Hi,

The average for 30-year fixed rate mortgage (FRM) shifted by a single basis point closing at 6.28%. The 5/1 ARM for the same period closed at 6.18%.On the economic front, growth is being sustained at average levels with inflation showing a gradual downward trend. End of the year sales was largely spurred by credit card debts. As piled up inventories are being slowly depleted, restocking them will increase business activity in the year ahead.

Though mortgage rates are not at the lowest, nearly 50% of all mortgage applications are for refinancing. With all economic factors poised for growth, even slight changes in the economy have the potential to push up mortgage rates further. Surveys indicate an increase in FRMs by at least 4-5 basis points in the coming week.

Thanks and Regards
Rob Thomos

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

Hi,

In spite of Federal Fund rates having remained steady in the latter part of 2006, the economy seems to hover between a soft landing and a recession, without taking a definite course. Mortgage rates for the same period showed considerable variations with the rates peaking in July before settling at lower rates. As the year winds to a close, mortgage rates have shown a marginal increase with the rise being most apparent in 30-year FRMs and 5/1 Hybrid ARMs. The former registered an average rate of 6.27% in the past week whereas the latter increased by two base points, closing at 6.11%.

Contrary to gloomy forecasts for housing and construction industries, recent trends have indicated a more positive outcome. Activities are picking up in these two sectors and the response has been encouraging. Other industries that are affected by trends in housing markets are also showing signs of revival.

Thanks and Regards
Rob Thomos