Today's Rates - 8/21/2009

30 YEAR FIXED – CONFORMING UP TO $417,000

4.875% WITH 1 POINT

5.25 % WITH 0 POINT

15 YEAR FIXED – CONFORMING

4.50 % WITH 1 POINT

4.75 % WITH 0 POINT

7 /1 ARM

4.25% WITH 1 POINT

4.50 % WITH 0 POINT

30 YEAR FIXED- CONFORMING JUMBO UP TO $729,750

5.25% WITH 1 POINT

5.50% WITH 0 POINT

JUMBO UP TO $2,000,000

5/1 ARM

5.625 % WITH 1 POINT

7/1 ARM

6.00 % WITH 1 POINT

Mortgage Rate Update

Mortgage Time Mortgage Market News for the week ending August 21, 2009
Compliments of Charles Gonzalez Stearns Lending PHONE: (866) 999-7720 www.stearnswholesale.com cgonzalez@stearns.com 4 Hutton Centre Santa Ana, CA 92707 Events This Week: Inflation Low Jobless Claims Rose Existing Sales Higher Manufacturing Up Events Next Week: Tues 8/25 Confidence 2-yr Auction Wed 8/26 Durable Orders New Home Sales 5-yr Auction Thur 8/27 GDP 7-yr Auction Fri 8/28 Core PCE Income		Housing Data Exceeds Expectations Strong manufacturing and housing sector data contributed to a rally in the stock market this week. This would ordinarily push mortgage rates higher, but the strong economic news was offset by tame PPI inflation data and a significant increase in Fed purchases of mortgage-backed securities (MBS), leading to a small decline in mortgage rates during the week. The national housing market data released this week was positive. July Existing Home Sales rose 7% from June, to the highest level since August 2007, and were 5% higher than one year ago. This marked the fourth straight monthly increase. Taking advantage of the $8,000 tax credit, first-time homebuyers accounted for 30% of all transactions. Inventories of unsold homes held steady from June at a 9.4-month supply. In addition, the National Association of Home Builders (NAHB) Housing Market index rose to the highest level since June 2008, indicating an improvement in home builder confidence. The NAHB also reported that housing affordability during the second quarter of 2009 remained near record levels. The improvement in home builder confidence was reflected in a fifth consecutive month of increased single-family housing starts in July. High affordability, low interest rates, and the first-time homebuyer tax credit combined to improve sentiment and stimulate housing market activity. Also Notable: July Core PPI inflation rose at a tame 2.6% annual rate The Fed will auction a record $109 billion next week Oil prices rose to $74 per barrel, the highest level of the year The Fed purchased $25 billion in agency MBS during the week ending 8/19 Average 30 yr fixed rate: Last week: -0.25% This week: -0.05% Stocks (weekly): Dow: 9,500 +200 NASDAQ: 2,000 +25 Week Ahead Next week's first economic data will be Tuesday's report on Consumer Confidence. Durable Orders, an important indicator of economic activity, and New Home Sales will be released on Wednesday. Revisions to second quarter Gross Domestic Product (GDP) will come out on Thursday. Finally, Core PCE inflation data and Personal Income will be released on Friday. In addition, there will be Treasury auctions on Tuesday, Wednesday, and Thursday. To learn more about news impacting interest rates and mortgage markets, go to www.mbsquoteline.com To learn more about the newsletter, please call 800-627-1077 All material Copyright © Ress No. 1, LTD and may not be reproduced without permission.