Stable Week For Mortgage Rates
Finally, another stable week for mortgage rates. The 10 Year treasury yield crept up slightly on the week, but no major moves with mortgage rates.
In a pleasant surprise, it was reported this week that that housing starts rose 8.2% in April to an annualized rate of 1.032 million units. Granted that increase was driven by starts on multi-unit dwellings, the April number was finally some positive news on the housing front. The housing crisis is not over, but the number does provide some hope that stability is returning to the housing market such that residential construction won't be near the drag on GDP growth that it has been in past quarters.
The key is senitment. The stock market has been trading on positive sentiment, despite the poor economic and earnings reports coming out as of late. If this sentiment spills over to the home lending market, we could finally experience a reduction in the mortgage spread premium and see further mortgage rate reductions.
I know, that's alot of "ifs", but even one month ago, this was not a possibility. Let's face facts though. Home sales and foreclosure rates are still trending in awful territory. Until this trend stabilizes, mortgage rates will continue on the roller coaster ride.
May the Mortgage Rates be with You!
Refinance Tool Box
In a pleasant surprise, it was reported this week that that housing starts rose 8.2% in April to an annualized rate of 1.032 million units. Granted that increase was driven by starts on multi-unit dwellings, the April number was finally some positive news on the housing front. The housing crisis is not over, but the number does provide some hope that stability is returning to the housing market such that residential construction won't be near the drag on GDP growth that it has been in past quarters.
The key is senitment. The stock market has been trading on positive sentiment, despite the poor economic and earnings reports coming out as of late. If this sentiment spills over to the home lending market, we could finally experience a reduction in the mortgage spread premium and see further mortgage rate reductions.
I know, that's alot of "ifs", but even one month ago, this was not a possibility. Let's face facts though. Home sales and foreclosure rates are still trending in awful territory. Until this trend stabilizes, mortgage rates will continue on the roller coaster ride.
May the Mortgage Rates be with You!
Refinance Tool Box
posted by Jim Bisnett at
2:00 PM
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