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The week that was
Continued market volatility; the mortgage market regained some losses from the week before as interest rate markets swung wildly from one economic report to the next. Freddie Mac Primary Mortgage Market Survey® for 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending August 13, 2009, up from last week when it averaged 5.22 percent. Last year at this time, the 30-year FRM averaged 6.52 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.75 percent this week, with an average 0.6 point, up from last week when it averaged 4.73 percent. A year ago, the 5-year ARM averaged 6.02 percent.
Note that these average rates are for Loan amounts $417,000 and lower.
July retail sales were much worse than market expectations and the U. of Michigan consumer sentiment index dipped to a new record low at 63.2.
The week that will be
No Treasury borrowing to concern traders. Housing starts and permits, along with existing home sales will rev up the chatter and debate about the status of the housing sector. Pushing mortgage rate lower will require a crack in the equity markets and a new concern that the economy isn’t as rosy as most believe now. This week will likely see continued intraday and interday volatility that have characterized the markets for the past two months.