Mortgage Rates Continue to rise 9-27
Two bond friendly reports couldn't ease concerns about what Alan Greenspan would say in his speech to the National Association of Business Economics in Chicago on Tuesday afternoon. U.S. Treasury securities were under selling pressure for a good part of the morning, and let up only after the conclusion of Greenspan's remarks, which offered no new insights into Fed thinking.
In his speech Greenspan addressed the housing market and the risky “exotic” mortgages that can get people in over their heads. He added, however, that many homeowners have a sizable cushion of equity to protect them against falling home prices.
At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year Conventional Fixed-Rate Mortgage was at 5.68 percent from 5.637 percent at Monday's close.
The 15-year Conventional Fixed-Rate Mortgage was at 5.245 percent from 5.239 percent at Monday's close.
Coming Up:
A report on advance orders for Durable Goods in August is on tap for Wednesday. A key economic indicator, it monitors willingness to spend on big-ticket items by both businesses and consumers. Analysts are expecting orders for durables to increase by 0.9 percent, which would be a healthy rebound from the 4.9 percent loss they suffered in July.
The slight decline in Treasury yields, which mortgage lenders use as a base to set rates, will not likely send rates back down. But it might be enough to keep them from escalating, at least until the Durable Goods report comes in. Better-than-expected orders would put pressure on Treasuries, while a weak number might spur a small rally.
In his speech Greenspan addressed the housing market and the risky “exotic” mortgages that can get people in over their heads. He added, however, that many homeowners have a sizable cushion of equity to protect them against falling home prices.
At 4 p.m. EDT, AVERAGE mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year Conventional Fixed-Rate Mortgage was at 5.68 percent from 5.637 percent at Monday's close.
The 15-year Conventional Fixed-Rate Mortgage was at 5.245 percent from 5.239 percent at Monday's close.
Coming Up:
A report on advance orders for Durable Goods in August is on tap for Wednesday. A key economic indicator, it monitors willingness to spend on big-ticket items by both businesses and consumers. Analysts are expecting orders for durables to increase by 0.9 percent, which would be a healthy rebound from the 4.9 percent loss they suffered in July.
The slight decline in Treasury yields, which mortgage lenders use as a base to set rates, will not likely send rates back down. But it might be enough to keep them from escalating, at least until the Durable Goods report comes in. Better-than-expected orders would put pressure on Treasuries, while a weak number might spur a small rally.
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