Danny Salas

Chico, CA Interest Rates Market Report – Economic Influences – November 19, 2009

Buyer’s WAKE UP!

Last week the borrowing costs on 30-year fixed rate mortgages, excluding fees, averaged, down 0.07% from the previous week and the lowest since mid-May. Mortgage interest rates are hovering within shouting distance of the all-time record low, set during the week ended March 27th — yet according to data provided by the Mortgage Bankers of America — the demand for home purchases dropped to a 12-year low last week!  Follow interest rates on my blog-site at www.accessloans.net .  Half-way down, on the left hand side you’ll see the national average of interest rates.

Jobless Claims

This morning’s Initial Jobless Claims came in at 505,000.  The media will think this is good news because that number has been dropping for weeks, however, let’s look at the bigger picture.  Continuing Claims numbers have dropped; from 6.82 Million to 5.81 Million.  However, why do you think that is?  You think people are being hired?  Or do you think that people have had to have Unemployment Claims for so long, that they are running out of benefits?  I think it’s the latter...as Obama had to sign a 20 week extension to benefits as Unemployment hit 10.2%.

Higher Rates…Period!

The Fed will announce the size of the Treasury Auctions scheduled for next week.  Keep in mind that the Fed’s $1.25 Trillion Mortgage-Backed Security Purchase Program is winding down.  Yet, applications, in the past few months, have been pretty high as rates have hovered around 5.0%.  So the supply of these loans will hit the market at a time when demand, or buying power of the Fed, will be going away.  You know the answer to that equation.  Higher Rates…period!

Stocks Taking A Hit

I’ve been mentioning that the Stock Market has been overbought, for some time now.  Well, it’s taking a hit today.  That’s helping bonds, momentarily, however, we should bounce right off the highs of 2009.  So, again, it’s an excellent time to lock!

Related Must Reads

Read, “Interesting Side Note On Unemployment”
Another Reason For Higher Rates
Stocks Overbought…A Look Into September 1, 2009

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This entry was posted on Thursday, November 19th, 2009 at 9:41 am and is filed under Chico Home Loans, Home Buying, Interest Rates, Weekly Market Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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