Weekly Updates on Mortgage Trends.
Hi,
In spite of Federal Fund rates having remained steady in the latter part of 2006, the economy seems to hover between a soft landing and a recession, without taking a definite course. Mortgage rates for the same period showed considerable variations with the rates peaking in July before settling at lower rates. As the year winds to a close, mortgage rates have shown a marginal increase with the rise being most apparent in 30-year FRMs and 5/1 Hybrid ARMs. The former registered an average rate of 6.27% in the past week whereas the latter increased by two base points, closing at 6.11%.
Contrary to gloomy forecasts for housing and construction industries, recent trends have indicated a more positive outcome. Activities are picking up in these two sectors and the response has been encouraging. Other industries that are affected by trends in housing markets are also showing signs of revival.
Thanks and Regards
Rob Thomos