Mortgage Market Trends for the Week Ending January 15, 2010


Long-term mortgage rates moved down slightly last week as some of the recent optimism regarding the economy waned while industrial output increased a solid 0.6%.  The increase is due to utility output related to the frigid weather gripping much of the nation.  Retail sales dropped by 0.3%. which was quite shy of the 0.5% increase that analysts had forecast.  Fortunately, both the Consumer Price Index’s headline and core numbers increased only a scant 0. l%.
Top Economic Reports 01-18-10
While the market is being reminded that this recovery is at its early stages and is a rather muted recovery the debate over what the Fed will do regarding its purchases of mortgage-backed securities is heating up. Some analysts are predicting n full 1.0% or more increase in rates by March, while others see only about a 0.5% increase in the first half of the year. In any event, rates are very, very likely to increase over the next few months. However, we could see rates slip just a little more next week if economic news continues to point to a slow path for economic recovery.

Graph Courtesy from NY Times in an article by Bob Tedeschi January 14, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

Comments are closed.