HFG Mortgage Market News for the week ending November 16,2012


Sandi Collette
NMLS# 269506
Senior Mortgage Consultant
Homeowners Financial Group


Please forward to anyone you know who could use mortgage expertise, and of course, your referrals will be given my prompt attention.

Little Change in Mortgage Rates


There was little market moving news for mortgage rates this week. Little apparent progress was seen regarding the US fiscal cliff or the debt troubles in Europe. Since it's extrememly difficult to estimate the impact of Hurricane Sandy, investors did not give much weight to the US economic data released this week. As a result, mortgage rates ended the week with just a small change.


Investors are operating with a high degree of uncertainty these days. Many hoped that after the election political leaders would provide clear signs that a compromise could be reached to resolve the upcoming fiscal cliff. If no action is taken, a series of spending cuts and tax increases will occur at the end of the year, which likely would result in a sharp slowdown in US economic growth. In general, investors have reacted to the uncertainty by shifting from riskier assests such as stocks to safer assests, including mortgage-backed securities (MBS). If a deal is reached, this fight to safety may reverse, at least to some degree.


The situation in Europe is also a source of frustration for investors. It's clear from the economic data that growth in the region is slowing, even in the stronger countries such as Germany. The big question is what actions will be taken to address the debt troubles. European officials remain divided about releasing additional aid to Greece. Spanish leaders have not decided whether they will ask for assistance from the European Union (EU) bailout programs. In short, while economic conditions continue to get worse, there has been little progress in the conflict between the troubled countries which need help and the stronger countries which will have to pay the bill.



Also Notable: 

  • Core CPI inflation was 2.0% higher than one year ago
  • The Minutes showed that Fed officials remain divided on policy
  • The Dow declined to the lowest level in five months
  • Third quarter GDP in the Eurozone declined 0.1%


Weekly Average Rates


Regional Breakdown         30-Yr FRM         15-Yr FRM           5/1-Yr ARM          1-Yr ARM

Average Rates                      3.34%              2.65%                   2.74%                2.55%

Fees & Points                        0.7                   0.7                       0.6                     0.3

Margin                                  N/A                  N/A                      2.74                    2.76

APR                                    3.396                2.75                     3.406                   3.58



Average 30 yr fixed rate:


Last week:        -0.10%

This week:       +0.01%



Stocks (weekly):


Dow:               12,500     -300

NASDAQ          2,825       -75



Week Ahead


Thanksgiving week will be a light one for economic data. Existing Home Sales will be released on Monday. Housing Starts will come out on Tuesday. Consumer Sentiment, Leading Indicators, and Jobless Claims are scheduled for Wednesday. Mortgage markets will be closed on Thursday and will close early on Friday in observance of Thanksgiving.


Source: MBS Quoteline. Intended for Real Estate Professionals Only. Programs and rates subject to change without notice.

Homeowners Financial Group
140 N. Montezuma Street, Suite 100       Prescott, AZ 86301
              (480) 305-8570


Homeowners Financial Group, 140 N. Montezuma Street, Suite 100, Prescott, AZ 86301

We lend in the following states: AZ, NM, ID, CA, WA, CO BK#0906222 Licensed by the Department of Corporations under the California Residential Mortgage Lending Act. Rates and Programs subject to change without notice. Subject to qualify.