Taos Real Estate - MORTGAGE MARKET UPDATE: Monday 08/18/2008

Posted by Jason Leach on August 18th, 2008 No Comments Printer-Friendly Author's website: Jason Leach

Market Direction:
Rates are: FLAT
Rate Volatility: HIGH

Interest Rate Trends:
Long Term (4-6 weeks): UP
Short Term (1-2 weeks): UP

LAST WEEK… AND THIS WEEK…

Mortgage rates had a horrible Monday last week, but climbed back to unchanged by Friday. This was particularly interesting in light of the news released: the Consumer Price Index (CPI) posted its highest increase since 1990. In this case, it was mostly ignored by investors taking comfort that the slide in oil prices (down to $112) will help moderate inflation. This also helped push up the US dollar too.
This week the major event will be the Producer Price Index (PPI). Normally, this is also a driver of the markets, as it tends to predict inflation. It shouldn’t have much effect though. Again, oil prices 22% lower than July highs and a stronger dollar should help to offset any negative impact. If oil stays low, and the dollar strengthens, we can expect a good week for mortgage rates.
An interesting tidbit released today: Southern California home sales had their highest monthly total since March 2007 as bargain shoppers snatched up foreclosed properties. Numbers show a 16.7% increase from June of this year, and a 13.8% increase from a year earlier. (DataQuick)

Mortgage Interest Rates*
Rates as of Monday, 18 August, 2008:
Conforming APR Payment per
$1,000		 Jumbo APR Payment per
$1,000
30-Year Fixed 6.375% 6.489% $6.24 7.5% 7.602% $6.99
15-Year Fixed 6% 6.187% $8.44 7.125% 7.286% $9.06
3/1 ARM 5.625% 5.734% $5.76 6.75% 6.847% $6.49
Land: 5-Year Fixed 6% 6.112% $6.00 6% 6.093% $6.00
*Rates are subject to change due to market fluctuations and borrower’s eligibility.
Members of: Better Business Bureau, National Association of Mortgage Brokers, and New Mexico Mortgage Brokers Association.

Jason Leach
Mortgage Consultant
Taos Lending Team
Phone: 575.751.4641
Mobile: 575.741.0814
jason@taoslendingteam.com
www.taoslendingteam.com

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