Weekly Mortgage Update

I have seen rates consistently increase over the past three weeks. The 30 year fixed conforming rate has past 5% for the national average. This does not include loan origination fees that include 70bps for the 30 year fixed option. I expect rates to continue on the upward trend for now but will go up and down depending market factors. The government notice about the limiting of mortgage back securities and the desire to get rid of Fannie Mae and Freddie Mac is a big part of the increase. The new proposal that came out from the Treasury last week reveal a bias towards less government and more privatization of the mortgage industry.
This week has a ton of interesting mortgage related news. This week is retail sales that are expected to show positive signs of recovery, in turn will push mortgage rates on the upward trend.

In good news for rates that might keep things steady is inflation worries have been relatively low. If we have any more inflation worries, expect rates to increase 50 basis points overnight.

Good luck with your mortgage locks !

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