11 June 2010 – Rates were on the rise toward the end of this week after starting at 2010 lows. Still reeling from last week’s jobs reports that showed a heavy concentration in temporary 2010 Census jobs, the equities markets suffered early Monday. The ensuing flight to quality that continued through Wednesday kept rates very low. By Thursday, however, favorable news provided the catalyst for investors to move back into equities, which bumped rates up a bit.
Mortgage data was, on the whole, negative. Mortgage applications dropped in both purchase and refinance transaction. The first statistic was not a surprise, but the second sent a strong message that most of the refinances that can happen already have happened. While demand to refinance is still high, low appraisals and borrower issues make many of them impossible.
Other housing data provided some good news. Defaults showed a month over month decrease and a small increase year over year. This is widely accepted as a sign that banks are beginning to work through their inventory of repossessed properties. While veiled in the seemingly negative concept of foreclosure, this was actually a sign that defaults are leveling off and that a sustainable housing recovery may be possible.Email This Post To a Friend.