What Did Interest Rates Do Last Week?

** according to Freddie Mac **

30-yr Fixed – Slightly Lower

Last Week:  6.05%

Previous Week:  6.06%

1yr Ago:  6.21%

15-yr Fixed – Slightly Higher

Last Week:  5.60%

Previous Week:  5.59%

1yr Ago:  5.92%

5/1 ARM – Slightly Lower

Last Week:  5.67%

Previous Week:  5.73%

1yr Ago:  5.92%

Highlight of Last Week’s Major Economic Reports

Mortgage rates were up and down and all over the place throughout the week, but they ended pretty close to where they started.

The stock market drove most of the action last week with the headliner coming from insurance giant AIG, who reported almost an $8 billion loss in the first quarter of 2008.  This “whoa!” announcement helped to drive mortgage rates down after several days of an upward climb, which had been spurred on by ‘okay’ economic news that suggested the economy is still treading the little-to-no-growth arena instead of the collapse that had been ominously predicted for the past few months.

What to Look for This Week

Consumers and inflation take the stage this week with the release of the latest Retail Sales and Consumer Price Index reports.  Any data that come in below forecasts may help to keep mortgage rates close to their current levels.  However, with stable economic news and persistent inflationary concerns, odds aren’t looking too pretty for much improvement in mortgage rates anytime soon.

Short-Term Rate Outlook

Stable to Slightly Higher

Stay Informed:  What’s in the News

“House OKs Controversial Housing Plan” from CNN.com

http://money.cnn.com/2008/05/08/news/economy/frank_omnibus_housing_bill_vote/index.htm?postversion=2008050818

“Reports:  Too Many Apartments” from The Austin Business Journal

http://austin.bizjournals.com/austin/stories/2008/05/12/story1.html?f=et180&b=1210564800^1632485&ana=e_vert

This update brought to you by Marie Funston of Coldwell Banker Mortgage & Kevin Wilhelm of Coldwell Banker United, Realtors.

For more information on Mortgage Rates & How Marie can help you, please contact:

Marie Funston
Mortgage Advisor
Coldwell Banker Mortgage
Tel.: (512) 691-6757
Click here for Marie’s Website

For more information on finding your perfect dream home here in the greater Austin area, please contact:

Kevin Wilhelm, ABR, GRI - Realtor
Coldwell Banker United, Realtors
512-417-3915

For more information and to search for homes in the greater Austin area, visit: www.KevinSellsAustin.com