Your weekly dose of San Jose Mortgage Rates and Market commentary.
The week that was:
- Freddie Mac reported in its Primary Mortgage Market Survey that 30-year fixed-rate mortgage averaged 4.99 percent with an average 0.7 point for the week ending January 21, 2010, down from last week when it averaged 5.06 percent. The 5-year adjustable-rate mortgage (ARM) averaged 4.27 percent this week, with an average 0.6 point, down from last week when it averaged 4.32 percent. Note that these averages are for conforming loan amounts $417,000 and lower.
- Wall Street Journal reported that California’s inventory of unsold, previously owned homes shrank to a five-year low in December, in another sign that the state may be coming out of its worst housing slump in decades. The supply of unsold single-family homes dropped to 3.8 months from 5.6 months a year ago and 16.6 months in January 2008. The inventory levels are now at their lowest level since 2005, resulting in frenzied sales with multiple offers in some cities. In Santa Clara County, inventory has dropped to 50 days from 243 a year ago.
- One of the most surprising developments last week was the way the Senate is back-peddling the confirmation of Ben Bernanke for his second term. Greenspan, Paul Volker, Warren Buffett, most former Fed officials; and last but not least, investors want Bernanke confirmed but now its populist movement for weak minded politicians that are increasingly worried they too may be tossed on the unemployed rolls in Nov that has weakened Bernanke support.
The week that will be:
- Economic data this week has much to chew on; existing and new home sales for Dec, two measurements of consumer sentiment, and the first look at Q4 GDP on the advance report on Friday (estimates are for GDP growth in the quarter to have increased 4.6%). Top it off with the FOMC meeting on Tuesday and Wednesday with a lame duck Fed chairman at the helm.
- Pres Obama is leading the attack on bank reform, unlikely he will back away given the recent messages from voters that the status quo is no longer acceptable.
This week should be one of increased market volatility in the financial markets. The equity markets are likely headed lower but the action will be choppy with rallies and selling causing big swings in prices and sentiment.
If you would like to get a quote for best Mortgage Rates for a San Jose Home Loan, please call me at 408.905.6261 or email me at [email protected].