San Jose Mortgage Rate & Market commentary. Check out how the 30 year fixed mortgage rate and 5 year ARM rates did last week and how they are expected to fare this week.
The week that was:
- Last week Freddie Mac in its Primary Mortgage Market Survey reported the 30-year fixed-rate mortgage averaged 5.07 percent with an average 0.6 point for the week ending April 15, 2010, down from last week when it averaged 5.21 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.08 percent this week, with an average 0.6 point, down from last week when it averaged 4.25 percent.
“After rising for four consecutive weeks, mortgage rates eased back to where they were two weeks ago and still remain historically low,” said Frank Nothaft, Freddie Mac vice president and chief economist. “”Low mortgage rates continue to help stabilize the housing market. The Fed noted that residential activity increased while home prices were stable across most of its 12 Districts over the six weeks prior to April 5th.In addition, credit standards remained generally unchanged across the nation, while credit quality was mixed according to the report.”
- The story of the week however didn’t hit until Friday morning when the SEC announced it was charging Goldman Sachs with fraud in its dealings in the sub prime mortgage markets. Specifically, for mis-leading a client while another client was setting up to short the same security. The immediate result was a strong sell-off in the stock market, led by financial stocks and money moving into the bond market, lowering rates.
The Week that will be:
- Will begin with the Goldman Sachs fraud charges following the stock market decline on Friday. This week the economic data is sparse with existing and new home sales the headliners on Thursday and Friday.
- We are not expecting any major rate declines unless there is a sea change in the economic outlook, and that isn’t likely.
- The Goldman situation will settle down; the key take away from the charges filed is whether this is the beginning of a sweep through Wall Street by the SEC. The Street is likely to get a lot of attention and likely more firms and charges will unfold.
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