Downbeat news about the health of the economy continued to rattle around the markets this week. The announcement of huge stimulus and mortgage rescue spending packages last week was backed up by a truly massive federal budget this week, and perhaps the only thing that is clear it that we’ll be paying for it for many, many years to come.
Mortgage rates were pretty flat. HSH’s overall average for the cost of mortgage money — our Fixed-Rate Mortgage Indicator (includes conforming, jumbo and ‘expanded conforming’ interest rates) — rose again this week by three basis points to land at 5.82%. The FRMI’s 5/1 Hybrid companion slipped back by four basis points, closing the survey week at 5.51%. Although jumbo 30-year FRMs slipped back a little to 6.73%, conforming FRMs rose by seven basis points.
President Obama spoke to the Congress this week to offer some measure of encouragement in that we’ll together face the troubles which confront us. Given that the outlook has become somewhat more bleak in the month since the inauguration, that expression of support may mean little. Failing banks and markets, plus falling values for homes and retirement accounts, have considerably darkened the nation’s moods, and many people remain unconvinced that the plans and concepts pressed by the new administration will work as advertised. www.HSH.com
Current Adjustable Rate Mortgage (ARM) Indexes
| Index | For the Week Ending | Previous Year | |
| Feb 13 | Jan 16 | Feb 15 | |
| 6-Mo. TCM | 0.45% | 0.29% | 2.11% |
| 1-Yr. TCM | 0.60% | 0.43% | 2.04% |
| 3-Yr. TCM | 1.36% | 1.05% | 2.13% |
| 5-Yr. TCM | 1.83% | 1.42% | 2.73% |
| FHFB NMCR | 5.51% | 6.18% | 6.35% |
| SAIF 11th Dist. COF | 2.757% | 3.155% | 4.172% |
| HSH Nat’l Avg. Offer Rate | 5.76% | 5.66% | 6.35% |
