Mortgage rates this week

Thanks to Jessie for these up to date stats!

PREMIER MORTGAGE GROUP WEEKLY MARKET UPDATE: May 16, 2014
Rates Improve on Weaker Economic Data

Today’s Rates
May 16, 2014
PRODUCT w/pts
30 Yr Fixed 4.25% 4.125%
+0.6pt
FHA 30 Yr Fixed 3.875% 3.75%
+0.5pt
5 Yr ARM 3.125% 2.75%
+1.0pt
7 Yr ARM 3.375% 3.125%
+1.0pt
5 Yr Jumbo ARM* (purchase loans) 2.875% 2.625%
+1.0pt
7 Yr Jumbo ARM* 3.125% 3.0%
+0.75pt
* Up to $1.5 million
– – – – –
This information is for real estate professionals only and is not intended for distribution to consumers.
– – – – –
Rates fluctuate and are always subject to credit approval. These rates are based on FICO scores of 740 and greater and loan amounts of at least $200k.
– – – – –
Conforming ARM’s assume 25% down payment.
– – – – –

As my valued business partner, I want to keep you informed with the latest news. Feel free to contact me for more details!

Jessie Thompson
Jessie Thompson
Certified Mortgage Planning Specialist
303.302.3840 direct
303.449.4455 fax
1844 Folsom Street
Boulder, CO 80302
jthompson@pmglending.com
www.jessiethompson.com

Straight Stats
Mortgage interest rates improved this past week as economic data was mainly weaker than expected. Economic data weaker than expected included April Retail Sales, April Import and Export Prices, March Business Inventories, the May NAHB Housing Market Index, April Industrial Production, April Capacity Utilization, and the University of Michigan Consumer Sentiment Index. Economic data stronger than expected included weekly jobless claims, the May New York Empire State Manufacturing Index, the May Philadelphia Fed Business Index, April Housing Starts, and April Building Permits. The strength in starts and permits, though, appears to be in multi-family units versus SFR’s. Jobless Claims fell to their lowest level in seven years but there is growing concern regarding the quality of jobs created. Also supporting rates was weaker than expected GDP in Europe. As a result, there is increased likelihood that the European Central Bank will reduce rates and engage in quantitative easing by purchasing EU debt. Tensions between Ukraine and Russia continue which is driving money into the relative safety of Treasuries as well.

Commentary
Headwinds still blow. Core year-over-year CPI has risen to 1.8%, close to the Fed’s target, but wages are still dead. Thus real earnings have fallen 0.1% year-over-year. A rise in prices now for any reason is a contractionary event, not sustainable Politics and mortgages… Melvin Luther Watt early this year replaced Ed DeMarco as director of the FHFA, boss of Fannie and Freddie. Mel Watt had been a North Carolina congressman since 1993. Upon his appointment everyone in our trade was pleased to see DeMarco go; for five years he had executed his own private charter to shut down the mortgage GSEs and force a privatization of mortgage credit, no matter what the cost to consumers and the economy — all without interference from the White House. None of us knew what to make of Watt. Another Obama low-horsepower, no-gas figurehead? This week we found out. Mel! You da man!! Watt’s first policy speech is a model. Ever since 2008, mortgage credit has suffered the back-blast from the bubble, scorched and paralyzed by political anger and over-regulation. Watt could easily have chosen a passive path. Instead: “FHFA is focused on how we manage the present.” Peter Drucker would be thrilled: act in the now, not the past or future; do what you can, and leave aside what you cannot.

Key Measures
Current
Last Week
Dow Jones Ind. Avg.
16,491.31
16,583.34
10 yr. U.S. Treasury
2.523
2.625
WSJ Prime Rate
3.25
3.25
1 year LIBOR
0.53460
0.54210
Next Week’s Indicators
Release Day
FOMC Minutes
Wednesday
Existing Home Sales
Thursday
Jobless Claims
Thursday
New Home Sales
Friday

Premier Mortgage Group
NMLS# 287279 MLO# 10018350 – Look up your lender’s license at www.nmlsconsumeraccess.org.
Copyright © Premier Mortgage Group. All rights reserved.
Loan products are not available outside of Colorado. NMLS Company ID #3001.

 

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