Your weekly dose of San Jose Mortgage Rates and Market Commentary.
The Week That Was:
- Freddie Mac in its Primary Mortgage Market Survey reported that the 30-year fixed-rate mortgage averaged 5.01 percent with an average 0.7 point for the week ending February 4, 2010, up from last week when it averaged 4.98 percent. The 5-year adjustable-rate mortgage (ARM) averaged 4.27 percent this week, with an average 0.6 point, up from last week when it averaged 4.25 percent.
- Pending existing home sales rebounded by 1 percent in December from a record drop in November that was due in part to the original expiration of the homebuyer tax credit, according the National Association of Realtors.
- More recently mortgage applications for home purchases jumped 10 percent at the end of January, according to figures from the Mortgage Bankers Association.
- The employment report dominated trade last week; once again the headlines don’t accurately reflect the true state of unemployment. 9.7% unemployed in Jan with non-farm job losses of 20K.
- Consumers continue to slow spending; Dec consumer credit fell again by $1.73B. The 11th month in a row consumer credit has declined.
The Week That Will be:
- Retail sales for Jan and weekly jobless claims both on Thursday.
- This week Treasury will auction $81B of notes and bonds on Tuesday, Wednesday and Thursday to borrow money to fund the growing federal budget deficit. Generally auctions have a negative influence on the interest rate markets but so far Treasury borrowing has met good demand.
- Given the relativity to other countries the U.S. is in no danger of losing its Aaa debt rating even though the Obama administration has predicted a $1.6 trillion budget deficit in 2010 and another $1.4T in 2011. May not loose the high rating but eventually the cost of borrowing will increase.
To get the best mortgage rate quote for San Jose home, call me at 408.905.6261 or email me at [email protected]