Mortgage Market Update
by Tom on June 11, 2009
in Market Report, Mortgage Matters, Mortgage Rate Updates
Sorry for the delay in posting this today, but been in back to back meetings…..
So what’s happening in the market today? A couple of things:
- Unemployment claims: Weekly new unemployment claims came in down at 601,000. Yes, that’s right, down at 601,000. The “ongoing” unemployment claims came in at a record high. So, as one analyst described it, “labor market isn’t hiring, even though firing may have slowed,”
- Retail sales for May came in up .5%. That was less than expected and it was mainly due to increased gas prices. Year to date compared to last year is down 10.2%, showing how much the consumer is pulling back in their spending.
- Yesterday, the Treasury had an auction that pushed rates up. Today, things went better and it pushed rates down.
So, where are we? Basically the same as we were yesterday morning:
30 year fixed:
6.0% with .125 pts for a 30 year fixed refi
5.75% with 0 pts for a 30 year purchase
15 year fixed:
5.375% with .125 pts for a 15 year fixed refi
5.125% with 0 pts for a 15 year fixed purchase
All of those assume credit scores over 740.
Recommendation:
Lock all loans. I’m switching back to an 80/20 bias. I think there’s a 20% chance that we could see a substantive drop in rates, but there’s an 80% chance that rates could go higher.
More as time and news allows.
Tom Vanderwell
