Market Update
Friday May 20, 2011 8:06 pm ET
By John Sauro
How Much Better Will Mortgage Rates Get?
The 30 Year Fixed Rate Mortgage held tight at 4.625% this week while Mortgage Bonds flirted with the 200-Day Moving Average earlier in the week, but lost some ground since. The 200- Day Moving Average is very tough ceiling of resistance. The Bond has hit this ceiling 5 of the last 8 trading days, but as not been able to break above it. Unless the Bond can break above this ceiling- the outlook for lower rates is not good.
Remember, Mortgage Rates are tied to Mortgage Bonds, not the 10 year Bond as many believe.
So, in order for mortgage rates to move lower the price of Mortgage Bonds has to move higher.
Listen to John Sauro’s interview this week with Bloomberg’s Kathllen Hays.
https://www.northatlanticmortgage.com/press.html
Economic News
Housing Starts and Permits came in lower than expected, which was no surprise with foreclosures and hi inventories of homes for sale weighing on the market.
The sale of Existing Homes slid unexpectedly to 0.8 percent to a 5.05 million annual pace for April, according to the National Association of Realtors. However, Home Values remained stable.
Jobless Claims fell by 29,000 to 409,000- the lowest number for unemployment claims in a month. The health of the jobs market is key to recovery of the housing market.
Update on FINREG (Financial Regulation)
Protect your homes value and your right to affordable home financing.
The focus is now on the Dodd-Frank Bill.
With implementation of the Dodd-Frank Bill a couple of months away, much has to be done to repeal or at least modify language in the Bill.
This Bill is another government power grab and will its unintended consequences will ad further pressure to the real estate market.
Get involved and let you elected officials know your concerns.
Already prepared template letters and contact info for your Congressman and Senator are available at: