July 2011

Mortgage Rates: Week Ended July 29

CONFORMING RATES ($200,000 to $417,000) 0 POINT 30 Year: 4.5% (4.62% APR) FHA 30 Year: 4.25% (4.37% APR) 5/1 ARM: 3.125% (3.245% APR) SUPER-CONFORMING RATES ($417,001 to $729,750 cap by county) 0 POINT 30 Year: 4.625% (4.745% APR) FHA 30 Year: 4.375% (4.495% APR) 5/1 ARM: 3.625% (3.745% APR) JUMBO RATES ($729,751 to $2,00,000) 1

Rate Dip!

What a week in rate markets. Radical swings up and down until yesterday, then two huge mortgage bond rallies Thursday and today, pushing rates net down on the week. And now mortgage bonds are squarely above 25 and 50 day moving averages that were stubborn overhead resistance until yesterday. Rates drop when bond prices rise

Rate Dip!

What a week in rate markets. Radical swings up and down until yesterday, then two huge mortgage bond rallies Thursday and today, pushing rates net down on the week. And now mortgage bonds are squarely above 25 and 50 day moving averages that were stubborn overhead resistance until yesterday. Rates drop when bond prices rise

Why rates haven’t risen on threat of downgrade

Given the inability for our elected officials to send a budget to the president, the bond market seems focused on three developments: “(1) A downgrade of Treasuries by at least one ratings agency. (2) A more prolonged downdraft in economic activity, caused in no small part by the uncertainty raised by the debt issues. (3)

Fundamentals 7/29: Awful GDP Trend

GDP -2Q2011 GDP at +1.3% vs. 0.4% for 1Q2010 (revised down from 1.9%) -This 1st of three readings worse than low expectations -Second revision August 26 –Full report here. -In light of fiscal and monetary policy, this report is dismal -The heart of this report is this sentence: “Real personal consumption expenditures increased 0.1 percent