Weekly Mortgage Review

Mortgage Update

by Marie Funston - Coldwell Banker Mortgage

What Did Interest Rates Do Last Week?

** based on Freddie Mac weekly average survey **

30-yr Fixed – Slightly Lower

Last Week: 4.81%

Previous Week: 4.83%

1yr Ago: 5.05%

15-yr Fixed – Slightly Lower

Last Week: 4.15%

Previous Week: 4.17%

1yr Ago: 4.38%

Highlight of Last Week’s Major Economic Reports

The rise in rates was finally reversed this week, as the final review of 3^rd quarter GDP revealed that the economy grew at a rate of 2.6% for the year, slightly below some projections of 3%. This was viewed by some traders as a sign that the economy isn’t forging ahead as strongly as recently anticipated and consequently brought on some relief for mortgage rates.

The housing market continues to offer glimmers of sporadic hope. Existing Home Sales inched up 5.6% in November, while New Home Sales increased 5.5%. Actual figures are still far below 2009’s tax-credit-inflated levels, but we may at least start seeing some stabilization in demand.

What to Look for This Week

Very light on the economic calendar this week, with the lone highlight being Uncle Sam auctioning off $99 billion in Treasuries. Whether demand is strong or weak will dictate the direction of rates, but we expect rates should remain fairly stable overall.