Month in review.

Position:Loan Rate Monitor

A week into November, we can now see the initial reaction from the financial markets in response to the results of the presidential election. The stock market sold off considerably as attention shifted to the impending fiscal logjam and its potential impact on economic expansion. The bond market rallied, sending mortgage rates even lower. It seems cliche to continue to say that rates are close to or at historic lows. It has been true for the past year that rates have moved steadily in a narrow range with a bias for going lower. Prior to the election, it appeared that rates had bottomed. But with the post-election-day rally, any imminent anticipated increase in rates becomes less likely. The flatter yield curve makes the standard fixed-rate loans the relative value for consumers over the adjustable-rate products. Refinance transactions dominate the production, boosted by the Home Affordable Refinance Program (HARP) and the lower rates.


Monthly 30-Dec 23-Jan 29-Feb 30-Mar 30-Apr 31-May 29-Jun Averages 15-Year 3.323 3.485 3.417 3.395 3.182 3.052 3.105 Fixed Conforming 30-Year 3.936 4.124 4.063 4.104 3.915 3.695 3.751 Fixed Conforming 30-Year 4.458 4.414 4.408 4.532 4.258 4.098 4.086 Fixed Jumbo 5/1 ARM 3.196 3.209 3.172 3.183 3.119 3.144...

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