Monday, July 30, 2007

Wilshire Weekly Mortgage Update - July 30th


Let's Recap:
The average 30-year fixed rate dropped to 6.69%, down from 6.73% last week.

The average 15-year fixed rate dropped only slightly to 6.37%, down from 6.38% last week.
The 1-year ARM on the other hand dropped to 5.69%, down from 5.72% from last week.

We can attribute this slight decrease in interest rates to weak Economic Reports from last week and continuing credit concerns; low Home Sales reports reflected a weakening housing market. We're seeing a slight decrease in interest rates because as we know, lower interest rates boost home sales.

Let's take a look:

Seasonally-adjusted home sales are down for the 4th consecutive month. They have now reached the lowest levels since November of 2002.

New Home Sales have encountered the heaviest decline since January.

Total Existing Home Sales (in the first half of this year), are 9.3% lower than sales in the first half of last year.

Year-to-date New Home Sales are down 21.7% from last year.

The Fed Funds Rate:

The Fed Funds Rate is currently holding at 5.25%. As previously stated in earlier weeks, we do not anticipate a change to the Fed Funds Rate during August 7th's meeting.

The Week Ahead ~ Outlook:
Continuing credit concerns are deterring investors and combined with continued housing market weakness (especially after this last week's Home Sales reports), we can anticipate slight interest rate cuts. But don't get excited just yet, we're still seeing continued bond market volatility and we're in line for another busy week full of Economic Reports.

For a view of the Economic Calendar, you can visit http://www.bloomberg.com/ or visit Ana Connell's (your Burbank Real Estate Specialist) version of The Week Ahead for a clearer description of what to expect.

Recommendation: As I mentioned last week, there still exists bond market volatility amongst continuing subprime market concerns and continued housing market weakness. I would still advise to lock-in a rate if it works for you (the consumer), or for your borrower (if you're an agent representing a buyer). If you're going to float, do so with caution! I'd be happy to advise you of any positive inter-day rate changes, simply send me an email at rbueno@wilshire-financial.com

Related Articles:
Credit concerns are spreading, says Bernanke By Krishna Guha inWashington and Richard Beales, Michael,MacKenzie and Saskia Scholtes in New York

Other Interesting Articles:
100% Financing On Jumbo & Super Jumbo Loans w/No PMI - Here's How
2nd Mortgages v. Home Equity Lines of Credit (HELOCs)
Free 24-Hour Recorded Information All About Mortgages












Thank You!
Ricardo Bueno- Residential Commercial Construction Investment Advisor
866.934.3444


Ricardo Bueno is a Mortgage Advisor & Team Leader with Wilshire Financial, Inc. A diversified mortgage brokerage located in Pasadena, CA - The City of Roses!

1 comment:

Anonymous said...

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