Market Insight, Mortgage News, Mortgage Rates

The Week Ahead for Mortgage Rates: July 9, 2012

Discount Percentage by baurka | iStockphoto.comMortgage markets improved last week as concerns for U.S. economic growth wrestled attention away, albeit temporarily, from the Eurozone. Mortgage bonds improved to record prices, lowering mortgage rates across Northwest Indiana and nationwide.

The biggest news of last week’s holiday-shortened trading week was the Friday release of last month’s Non-Farm Payrolls report.

In it, the Bureau of Labor Statistics showed that the economy added 80,000 net new jobs in June, and that the initial tallies for April and May were overstated by a combined 2000 jobs. Wall Street had expected to see at least 100,000 jobs created in June.

Click here to see today’s mortgage rates.

When the actual number of jobs fell short of expectations, stock markets sold off and bond markets gained.

According to Freddie Mac, last week’s 30-year fixed rate mortgage rate averaged 3.62% nationwide for borrowers with conforming mortgages willing to pay 0.8 discount points plus a full set of closing costs.

For every $100,000 borrowed on a 30-year fixed rate mortgage, you’ll pay just $456 per month.

15-year fixed rate mortgages averaged 2.89% with 0.7 discount points.

Click here to see today’s mortgage rates.

Both products set record-low mortgage rates, based on Freddie Mac’s data. However, by the week’s end, after the jobs report, both rates had moved lower still to the benefit of Indiana home buyers and rate shoppers. 

This week, with little new economic data set for release, mortgage markets are expected to turn attention back to Europe. Early Monday, Greece’s new government won a key confidence vote in Parliament which ends a period of uncertainty during which the nation-state was without a clear leader.

This is one step toward resolving the debt issues that have plagued Greece but not the last step. How markets respond to Greece’s next actions will, in part, shape the direction of mortgage rates here in the United States.

Click here to see today’s mortgage rates.

With optimism, mortgage rates will rise.

Should Greece falter, mortgage rates will fall.

Mortgage rates are expected to remain volatile for at least the next 3 weeks. If you’re floating a mortgage rate or wondering whether it’s time to lock a rate with your lender, consider locking in. With mortgage rates at 3.62% on average, rates have much more room to rise than to fall.

This is The Week Ahead for Mortgage Rates: July 9, 2012.

Click here to see today’s mortgage rates.

Quick general rule of thumb when keeping an eye on mortgage rates.

Strong Economic News: $$$ from Bonds —> Stocks = Home Loan Rates Go Up

Weak Economic News: $$$ from Stocks —> Bonds = Home Loan Rates Go Down

If you or someone you know is thinking about buying a home, the combination of low home loan rates and affordable home prices make this an ideal time to buy a home. Want to know if you can afford a new home? Call or text me at 512-522-7284 to discuss your personal situation and your home loan options!

Related Posts Plugin for WordPress, Blogger...
Be Sociable, Share!

James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

More Posts - Website

Follow Me:
TwitterFacebookLinkedInPinterest

  • Get your FICO Score with Score Watch® today! Click here!

Speak Your Mind

WelcomeHomeNWI.com