Compare Mortgage Rates – August 2010
Compare mortgage rates online to find the best rates from top national mortgage lenders for August 2010. The mortgage industry has benefitted from historically low interest rates for the better part of 2010 and the month of August is shaping up to have another run of super low interest rates. The low rates have been a strong benefit to the mortgage industry, helping consumers secure ultra low refinance loans, but has not been substantially impactful on the housing market with driving new buyers into the marketplace.
August Mortgage Rates Trend Graph
The month of August will be dominated by economic reports impacting the direction of mortgage rates. While the stock market is generally the best reflection of the direction mortgage rates are likely to head, there has been a significant impact by the FOMC subsidizing rates, helping to keep large rate swings from impacting mortgage rates, as can be witnessed by the above chart. The good news is that rates, even when they have moved up or down with the market have not seen changes in excess of .25% up or down for the better part of the last year.
Most corporate earning reports have already been published in July for key DOW component companies, so the impact that earnings and guidance will have on the direction of the stock market will carry less weight this month and investors will likely focus more on the data from key reports. We will be following the following key reports this month and their impact on driving interest rates to move higher or lower. As the stock (equity) market moves up and down, the bond market is likely to follow in direction and ultimately consumer mortgage rates will be set by traders of mortgage backed loan securities (MBS) who price these loan instruments heavily based on bond pricing.
Key August Economic Reports
August, 2nd – ISM Manufacturing Index
August, 3rd – Motor Vehicle Sales, Factory Orders
August, 5th – Jobless Claims
August, 6th – Non Farm Payrolls, Consumer Credit
August, 10th – FOMC meeting
August, 11th – International Trade
August, 12th – Jobless Claims
August, 13th – Consumer Price Index, Retail Sales
August, 17th – Housing Starts, Producer Price Index
August, 19th – Jobless Claims
August, 24th – Existing Home Sales
August, 25th – Durable Goods, New Home Sales
August, 26th – Jobless Claims
August, 27th – GDP, Consumer Sentiment
August, 30th – Personal Income and Outlays
Consumers who are monitoring the home finance and mortgage market that may be considering obtaining a mortgage loan will be following the direction and momentum of the stock market and mortgage rate marketplace. The best way to monitor the direction rates are likely to be heading is to follow the movement of the ten year treasury bond, which is starting the month at 2.90%. Most national mortgage lenders were offering fixed rate loans in the mid four percent range (4.56%) for thirty year loans and closer to four percent on fifteen year loan terms.
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