The big news this week in regards to mortgage rates was the unemployment reports. Unemployment dropped .4%, from 9.8% to 9.4%. Though the number sounds good, it didn’t boost the stock market due to the amount of people getting out of the job market. An unemployed person is defined by someone looking for work that is not working. If you are not looking , you are not considered unemployed. This report gained some momentum in the bond market as the economy is still recovering at a very slow pace. The market took money out of stocks and into bonds – lowering rates last week.
As of Monday morning – 30 year fixed par rates dropped to 4.625% , 15 Year Fixed to 4.125% and 5/1 ARM loans to 3.25%. Overall a good improvement in rate/pricing. This is the best I have seen rates in 2-3 weeks.
Here is a link on what one expert thinks will happen with the mortgage market in 2011. http://www.msnbc.msn.com/id/40913669/ns/business-real_estate/ . I agree with all points except the last one – loans can still be done in a timely manner.