Unsteady Mortgage Rates
Hi,
The average 30-year FRM decreased by a basis point to close at 6.26%. Hybrid 5/1 ARMs closed at 6.03%.
The turmoil in the sub prime market continues with increasing delinquencies and foreclosures. More stringent measures can help to contain the problem within this category of loans, without there being too many adverse effects on the broader mortgage market.
With rising foreclosures, there are more houses for sale in the market. Though prices are dropping there are few takers. If measures were put into place that can limit foreclosures, it would be in the better interests of everyone concerned.
Mortgage rates can be affected by flight-to-quality with comparatively fewer risks that are being increasingly sought by investors.
Cheers
Rob Thomos