Mortgage Market Update
| Mortgage Market Update - October 27, 2009 |
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| Loan Program | Conventional | Conv > $417,000 | FHA/VA | FHA > $417,000 |
30 Year Fixed | 4.875% | 5.00% | 4.875% | 5.00% |
15 Year Fixed | 4.25% | 4.375% | 4.50% | 4.50% |
3/1 ARM | 3.625% | 3.875% | 3.75% | 3.75% |
5/1 ARM | 3.375% | 3.875% | 4.00% | 4.125% |
7/1 ARM | 3.875% | 4.25% |
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The above scenario assumes credit scores greater than 740, 20% down-payment, 25-day lock period, and 1 origination point. |
| USDA Rural Housing† | CDA | VHDA | |
30 Year Fixed | 5.00% | 5.625% | 4.75% | |
The above scenario assumes credit scores greater than 660, 3% down-payment, 25-day lock period, and 3 origination points. † The above scenario assumes credit scores greater than 700, 20% down-payment, 25-day lock period, and 1 origination point. |
| Non-Agency/ Jumbo | |
30 Year Fixed | 6.25% | |
5/1 ARM | 4.50% | |
The above scenario assumes credit scores greater than 800, 25% down-payment, 25-day lock period, and zero origination points. |
Market Comment |
Mortgage bond prices ended the week nearly unchanged despite considerable market volatility. Trading was up and down all week. Rates improved the first portion of the week as stocks fell below key psychological levels. Unfortunately a reversal the middle portion of the week eroded the earlier improvements. Data was mixed with tame inflation readings but generally stronger than expected economic activity. For the week, interest rates were near unchanged. The Treasury auctions will take center stage again this week. If there is strong foreign demand it will likely spill over to the mortgage bond market. Weak auctions will likely result in mortgage interest rate increases. Employment cost index data will also be carefully watched. |
Looking Ahead |
Economic Indicator | Release Date | ConsensusEstimate | Analysis |
Durable Goods Orders | Tuesday, October 27, 2009 | Up 0.7% |
Last week’s existing home sales data shocked the market with a stronger than expected increase. Sales rose 9.4%, considerably stronger than the expected 5.5% increase. Some analysts attribute the surge in sales to the $8000 tax credit that is currently set to expire at the end of November. Lower home prices and historically low mortgage interest rates also factored into the increase. From a national perspective this is a positive report. However, the fact that some major metropolitan areas of the country failed to see improvements is an example of the axiom that real estate is local. There is still uncertainty regarding the future state of the economy. Mortgage rates are great. Take advantage of them while that remains the case.
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Consumer Confidence | Tuesday, October 27, 2009 | 54.0 |
2-year Treasury Note Auction | Tuesday, October 27, 2009 | None |
New Home Sales | Wednesday, October 28, 2009 | Up 2.6% |
5-year Treasury Note Auction | Wednesday, October 28, 2009 | None |
Q3 Advance GDP | Thursday, October 29, 2009 | Up 3.1% |
7-year Treasury Note Auction | Thursday, October 29, 2009 | None |
Personal Income and Outlays | Friday, October 30, 2009 | Unchanged, Down 0.4% |
Q3 Employment Cost Index | Friday, October 30, 2009 | Up 0.5% |
U of Michigan Consumer Sentiment | Friday, October 30, 2009 | 70.0 |
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About Chris & Karen Highland
We’re Chris and Karen Highland, The Highland Real Estate Group. We’ve lived in the Frederick area for over 18 years and are raising our 4 children here. We’ve seen many communities built where there once was farmland. We love the “small-city yet large-town” atmosphere of Frederick, the quality of life, and the affordability we’ve found here.
I've been selling real estate in Central Maryland for almost 16 years. Karen has been helping me over the years in different capacities, as an assistant, then as a buyer’s agent. For a year, I managed an office and Karen took over the bulk of the business. It was a great experience for both of us. I managed 90+ agents and saw more contracts come over my desk than the previous 14 years combined!
Now I'm back, running the business and Karen is running the office, and blogging and marketing. With each new year comes a different kind of market and new challenges.
In this present market, we face many challenges with mortgage problems, distressed properties and the credit crunch. I've gotten a nationally recognized certification , CDPE, Certified Distressed Properties Expert, to equip me to help homeowners in distress. I'll be blogging about a lot of these issues and about all kinds of real estate topics.
Karen and I always have something to say! Join us in our online, ongoing conversation about Frederick Real Estate