Economic Reports, Market Insight, Mortgage News, Mortgage Rates

The Week Ahead for Mortgage Rates: August 12, 2013

August 12, 2013 by · Leave a Comment 

What's Ahead For Mortgage Rates This Week - August 12, 2013Highlights of economic news from last week, include a survey of senior loan officers from U.S. and foreign banks doing business in the U.S.

They indicated that banks were gradually easing lending standards for business and consumer loans, but viewed lending criteria for home loans as more restrictive than other types of loans.

Bank loan officers surveyed indicated on Monday that while mortgage lending requirements have been eased for low risk mortgage loans, it remains challenging for those with less-than-stellar credit to qualify for home loans.

Bankers noted some concern that easing credit standards may signal to the Fed that it’s time to taper the quantitative easing program that’s designed to keep long-term interest rates, including mortgage rates, low.

On Tuesday, CoreLogic Home Prices report for June showed that home prices rose 1.90 percent in June, and rose by 11.88 percent year-over-year. 48 states showed rising home prices while only Mississippi and Delaware showed a decline.

Nevada led the list of higher home prices with a 27.00 percent gain year-over-year; Nevada home values were among the hardest-hit in the economic downturn.

Weekly Jobless Claims was released on Thursday and came in at 333,000, which were higher than last week’s reading of 328,000 new jobless claims. The four-week average is considered a less volatile indicator of unemployment trends.

The four-week rolling average for new jobless claims decreased by 6250 to 335,000. This was the lowest reading for the four-week rolling average since November 2007.

Freddie Mac’s weekly report on mortgage rates brought not-so-good news indicating the average rate for 30-year fixed rate mortgages rose by one basis point to 4.40 percent, while the average rate for a 15-year fixed mortgage was unchanged at 3.43 percent. The average rate for a 5/1 adjustable-rate mortgage rose by one basis point to 3.19 percent.

Discount points for 30-year fixed rate mortgages and 15-year fixed rate mortgages were unchanged at 0.7 percent, while average discount points for a 5/1 adjustable rate mortgage dropped to 0.5 percent.

What’s Coming Up In The Week Ahead for Mortgage Rates: August 12, 2013.

This week’s economic news includes the federal budget for Monday. Retail Sales and Core Retail Sales will be reported on Tuesday. The Producers Price Index (PPI) and Core PPI will be out on Wednesday.

Thursday’s news includes weekly jobless claims and Freddie Mac’s mortgage rates update. The Consumer Price Index (CPI) and Core CPI (excluding volatile food and energy sectors) will also be released. The NAHB Home Builders Housing Market Index (HMI) is also due Thursday.

Friday’s scheduled economic news includes Housing Starts, Building Permits and Consumer Sentiment for July.

Although the Treasury will not be issuing any new Notes or Bonds this week, the Fed will be keeping an eye on this week’s packed economic calendar of reports to better understand how the U.S. economy is performing. For those shopping their mortgage rate, float cautiously as market sentiment can quickly change.

This is The Week Ahead for Mortgage Rates: August 12, 2013.

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QUICK GENERAL RULE OF THUMB WHEN MONITORING 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!

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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!

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