Last week ended up being a bit of a dozy. Hard to compete with the rally and big news of the previous week. The big number this week was Retails Sales which showed a surprise decline of .4% from February to March.Still this is a number that the economist have been watching to see signs of the effects of the January tax increases. On the back of the weak Payroll number a week earlier there is a growing concern regarding the strength of the economy, again….
The FOMC Minutes from the March 20 Fed meeting were released on Wednesday and contained a bit of a surprise. The minutes revealed that, due to improvement in the economic outlook, there was growing support for scaling back the Treasury and mortgage-backed securities (MBS) purchase program,beginning as soon as this summer. The impact of this news on mortgage rates was limited, however, since the Fed meeting took place before the weak March Employment and Retail Sales reports were released. The recent data reduced investor concerns about an earlier than expected end to the bond-buying program. Still this puts us all on notice that the artificially low mortgage rates will not last forever..
Mortgage rates are pretty much unchanged from a week ago.
The 10-year US Treasury Note is at 1.71%, down .01 since last time.
Credit Spread (10yr UST vs. FNMA Current Coupon) 1.37, from1.36 last time. Spread is remaining very wide compared to what we have seen int he last year or so.
Current 30-year Fixed 3.5%. Jumbo 5/1 ARM 2.25%.
Of note, the conforming 5/1 ARM is now at 2.25%, the 7/1 at2.50%.
I am always happy to help with any mortgage questions and/or pre-approvals.