June 4, 2011
June 4, 2011 by admin
The continued decline in stock prices, weakness in housing and the employment markets over the past sixty days has very few silver linings. The one area that has benefitted from the market changes is the mortgage market, where fixed home mortgage rates have continued to improve. Loan rates dropped to their lowest levels in the month of May and continued moving lower into June. Friday report on the non farm payrolls, unemployment rate and Wednesday’s report from ADP on private sector job growth will only help to keep loan rates on the downward path. Yields on the ten year bond dropped below three percent for the first time this year, and finised at 2.99% this week. This correlates to most national mortgage lenders offering thirty year loan terms at 4.5% or below and fifteen year programs back under four percent. As loan rates drop, more consumers will look to refinance their home mortgages, but their is not likely to be much improvement with home sales and the real estate market. The dip with the economy will continue to add politicial pressures to try and jump start corporate hiring, adding to this is the increased focus on corporate earnings and upcoming GOP candidacy announcements.