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|Week of: Monday, August 16, 2010|
Present Market Conditions
“Interest rates for fixed mortgages and 5-year hybrid ARMs again broke record lows last week following reports of a sluggish job market.” stated Frank Nothaft, chief economist for Freddie Mac. He continued by saying “The low rates have triggered a pickup in refinancing, which accounted for more than 80 percent of conventional loan applications in recent weeks. Freddie Mac’s analysis of second quarter refinances found that consumers overwhelmingly chose fixed-rate products, and many shortened their terms from 30 years to 20 or 15 years, which allow faster principal paydowns.” “The low rates are also helping to heal many battered local housing markets by increasing home-purchase activity. The National Association of Realtors® reported that 65 percent of the 155 metropolitan areas they track experienced yearly house-price increases in the second quarter of this year.”
A busy Tuesday will keep investor’s focus with the release of the Housing Starts, Industrial Production and the Producer Price Index (PPI). Other reports that may impact investor decisions are Monday’s Empire State Manufacturing Index along with Thursday’s release of the Philly Fed Manufacturing Index and Leading Indicators report.
With rates continuing to hold at historic lows, now is the best time to meet with your mortgage professional to discuss a mortgage solution to meet your financial goals.