Mortgage Rates Remain Unchanged
Hi, :welcome:
There were no changes in the average 30-year FRM and the 5/1 ARM rates since last week, which continued at 6.27% and 6.03% respectively. The rates for the former are the lowest recorded so far in 2007.
With defaults in sub prime mortgages still continuing to escalate, certain stringent measures have been adopted to prevent the effect from spreading to better quality loans and to the broader mortgage market. Loans for which credit standards have been made more rigid include stated-income loans and no-income verification loans.
The problems in the sub prime market could have been worse had it been compounded by a weak economy. This fortunately is not the case. Though there are areas of low growth, it has been compensated by development in other sectors.
The fact that 10-year Treasury yields went up by nearly eight basis points will find an echo in the movement of fixed rate mortgages in the coming week.
Cheers
Rob Thomos :eyes: