The trend trajectory of mortgage interest rates here in the states remains firmly “joined-at-the-hip” with the rise and fall of “flight-to-quality” flows of capital from the global credit markets. Currently those capital flows are rising which is contributing strong foundational support to the prospects for steady to perhaps fractionally lower mortgage interest rates from your investors.
Looking ahead to the coming week — Uncle Sam will be in the credit markets looking to borrow $99 billion over the course of a three-day period stretching from Tuesday through Thursday. The Treasury Department will sell $35 billion of 2-year notes on Tuesday, $35 billion of 5-year notes on Wednesday and will wrap-up the coming week’s borrowing spree with the sale of $29 billion of 7-year notes on Thursday.
Also on tap next week will be the release of the May New Home Sales figures on Monday, May Durable Goods Orders data on Wednesday, and the weekly jobless stats and the final revision of the Q1 Gross Domestic Product figure will both hit the wires on Thursday. The release of the May Personal Income and Spending data will round out the macro-economic news for the week on Friday.
Trading activity in the stock markets will probably be the strongest single determinant of mortgage interest rate direction next week.
Mortgage Rates as of Friday June 22, 2012 ( purchase transactions )
30 day rate locks, subject to credit score and loan to value edits
30 year fixed 3.50% 0% origination fee
3.25% 1.0 origination fee
30 year fixed rate 3.50% .625% origination fee( 30 day lock )
15 year fixed rate 2.875%
5/1 ARM 2.375%
7/1 ARM 2.75%