May
17

Mortgage Market Trends for week ending May 14, 2010

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Mortgage rates again moved downward last week, as financial markets continued to absorb the reality of the challenges in Europe, especially in Greece. Additionally, concerns over other countries’ debt levels generated some introspection here over our burgeoning debt levels. On a brighter note, economic news continues to point toward recovery. Last week, Retail Sales rose 0.4%, which was slightly better than expected. Industrial Production also climbed by 0.8%, with factory usage again moving closer to pre-recession levels, fueling hopes for a sustained recovery.

Next week, markets will get some insight into inflationary pressures with both the Consumer and Producer Prices Indices. With most experts expecting very little, if any, inflation, a surprise increase in either index could move mortgage rates upward. Even with more and more signs of economic strength here in the US, any additional concerns regarding the situation in Europe will very likely help contain any sizable increase in mortgage rates, at least for the time being.

Graph Courtesy from NY Times in an article by Bob Tedeschi May 12, 2010.  Data provided by Jeff Carpenter, Director of Finance, GFI Mortgage Bankers, Inc.

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