Massachusetts Home Buyer Network

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Weekly Mortgage News - Still Going Strong


We finished off another week with most economic news reports being better than expected. Weekly Jobless Claims dropped sharply, and Continued Claims declined to the lowest level since the middle of 2008. This kind of strong economic growth should support continued improvement in the housing market.


Inflation reports showed high top line numbers but that was mostly due to increase in gas prices. The Fed prefers to look at core inflation which excludes food and energy. Consumer Price Index (CPI) is 2% higher than a year ago and the Producer Price Index (PPI) is up 1.7%. This right in line with the Fed’s expressed target of 2% yearly inflation.


The only real disappointing news for the markets was Consumer Sentiment that was released Friday morning. It was much lower, 71.8, than expected, 78.


Rates this week have been fairly steady with a couple of attempts to head higher. Thanks to the Consumer Sentiment news on Friday the bond market is stronger today and rates are lower for the first time this week. The net result is rates being pretty much unchanged for the week.


The 10-year US Treasury Note is at 2.01%, down .04 since last time.

Credit Spread (10yr UST vs. FNMA Current Coupon) 1.27, from 1.20 last time. This is the widest it has been for quite a while.


Current 30-year Fixed 3.625%. Jumbo 5/1 ARM 2.50%.

Of note, the conforming 5/1 ARM is now at 2.25%, the 7/1 at 2.625%.


If you have any questions about 203K loans or other mortgage products, or need help with a pre-approval, I am always happy to be of service.

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