Home Lending Market Update


June 6, 2005 LOS ANGELES -- Last week delivered some mixed economic news which, as seen in rate sheets, throttled home loan interest rates to a dramatic low point. We saw a decrease in the unemployment rate which seemed to at least partially catalyze the Conference Board's Consumer Confidence index's movement upward. Many economists anticipated a downward fall.

On the manufacturing side of things we saw indicators drop once again, as layoffs increased. Predictions for job creations for the month of may were turned upside-down when reports were released indicating on 78,000 new jobs were created in May as opposed to the forecasted 190,000.

This week seems to offer little economic news which could sway the markets significantly. We will rely on last week's economic releases to be the largest factor swaying mortgage rates this week.

For the uninitiated:
Weaker economic news generally pushes mortgage rates lower. Don't get too excited, however. With interest rates at these low points, expecting them to plummet much further than they are at present may be a pipe dream. If they do run lower it will more than likely be in small chronological pockets. Rates could continue to inch their way downward as an after effect of the weak jobs report. Mortgage Rate News Column by Nolan Voight, Industry Analyst and Columnist.


© 2006 CMR. All rights reserved.