Greenpath's Weekly Mortgage Newsletter - 4/24/2011

Week of April 24, 2011 Mortgage Market Commentary Continued reminders of the poor state of the housing market helped push mortgage rates downward slightly last week. While both Hous ing Starts and Existi ng Home Sales posted in creases, their levels are still woefully low, and until more jobs are created, unlikely to rise quickly. This week is a very busy week for fina ncial markets. With more and more focus on i nflation in the last few weeks, many analyst s will be carefully reading the Fed’s Policy Announ cement. While no one is expecting the Fed to change rates, markets could react if the Fed expresses more than a passing acknowledgement of slowly growing price pressures. If the Fed shows even more concern, then rates are likely to move upward. However, if the Fed does not mention inflat ionary pressures, rates might trend downward ju st slightly again. We’ll also get a g ood look at consu mer moods with both Consumer Confidence and Sentimen t due this week. Combined with the 1st esti mate of last quarter’s GDP, we could see rates moving back up with any signs of unexpected strength in the economy. M o r t g a g e R a t e s 3.00% 3.50% 4.00% 4.50% 5.00% 2/3 2/17 3/3 3/17 3/31 4/14 30Yr 15Yr 1Yr ARM D o w J o n e s 11,500.00 11,750.00 12,000.00 12,250.00 12,500.00 12,750.00 27 -Jan 10-Feb 24 -Feb 10-Mar 24-Mar 7- Apr 21-Apr This Week’s Top Economic Reports and Events Interest Rates and Indexes Mortgage Rate Trends 1 Yr T- Bi ll 0. 240% 11 th D. COFI 1. 46 9% Short-Term 10 Yr T-Note 3 .51 0% COSI 2.220% Long-Term 6 Mon th Lib or 0.433% CODI 0.331% Volatility High Pri me Rat e 3.250% MTA 0.295% H i s t o r i c a l R a t e s 0.00 3.00 6.00 9.00 Apr-06 Apr-07 Apr-0 8 Apr-09 Apr-10 1 Yr CMT MTA COFI CODI Prime 10 Year Treasury Note Trend 3.00 3.25 3.50 3.75 27-J an 10-F eb 24 -Feb 10-Mar 24 -Mar 7- Apr 21-Apr 10 Ye ar Tr ea sury Not e 20 Day Movi ng Av e To Receive This Newsletter from your Home Mortgage Consultant, Please Contact Them Directly 26800 Aliso Vie jo Pkwy, Suit e 100, Aliso Viejo, CA 92656 Report/Event Date Prior Est. Impact New Home Sales 4/25 250K 280K Limited After last week’s meager housing news, another small increase in new sales will likely only put a tiny amount of upward pressure on rates. Consumer Confidence 4/26 63.4 64.4 Significant Battered by rising gas prices, we might see Confidence slipping, but mortgage rates would then benefit from some downward pressure. FOMC Policy Announcement 4/27 Significant Inflation is the key to thi s announcement. The more the Fed expresses concern about price pressures, the more likely rates are to increase. Gross Domestic Product (Adv) 4/28 3.1% 1.7% Significant A few analysts are expecting a su rprise GDP closer to 2.5%. If this comes to pass, rates are likely to feel some upward pressure. U of Mich. Consumer Sentiment 4/29 69.6 69.6 Moderate If both Confidence and Sentiment reveal decreasing consumer moods, then mortgage rates will experience some additional downward pressure. Weekly Mortgage Newsletter provided to you by

Greenpath's Weekly Mortgage Newsletter - 4/24/2011

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