With the exception of short-term adjustable-rate mortgages, mortgage rates continued their downward spiral last week.
Maybe that’s not such a big surprise, as bad news on the economic front remained front and center. All this even after the U.S. Commerce Department cut its gross domestic product estimation from a 2.4% rise to a 1.6% rise for the second quarter of 2010.
Considering the Commerce Department pegged first quarter growth at 3.7%, the second quarter decline was steep, likely pushing off serious talk of economic recovery for yet another quarter, at least.
This will likely have a big impact on mortgage rates. Right now, the average 30-year fixed mortgage rate stands at 4.445%, according to the BankingMyWay Weekly Mortgage Rate Tracker.
Using the second quarter timeline as a benchmark, the average 30-year mortgage rate on April 5 was 5.28%. At the time, confidence in a full-blown U.S. economy recovery was higher, as was the stock market and consumer confidence.
But that’s clearly not the case today, as the stock market is in full retreat and consumers are once again showing a healthy skepticism for any talk of a rejuvenated economy.
Corporate America is no different — they’re the guys making the biggest impact on one of the economy’s key benchmarks, the U.S. unemployment number, which stands at 9.5%.
Increasingly, corporate managers are downbeat on the U.S. economy. The most recent Business Optimism Index, which is calculated by the accounting firm Grant Thornton, fell from 67.4 in May to 58.4 in August. Perhaps more telling, just 34% of U.S. executives surveyed by Grant Thornton say the economy will improve in the next six months. That’s down from 63% who said the same thing in May’s BOI survey.
As we pull back from this week’s economic numbers, the picture is a sobering one — few experts are calling for an economic recovery in 2010. For mortgage rate watchers, that means continued lower rates and great deals for qualified homebuyers. For homeowners looking to sell their homes, however, demand remains soft and getting full value for their homes is a tall order.
With that thought in mind, here’s a snapshot of this week’s mortgage numbers, as measured by the BankingMyWay Weekly Mortgage Rate Tracker.
Description This Week Last Week
One-Year ARM 3.993% 3.424%
Three-Year ARM 4.026% 3.902%
Five-Year ARM 3.534% 3.655%
15-Year Mortgage 3.957% 4.117%
30-Year Mortgage 4.445% 4.762%
Consequently, it’s still a buyer’s market for mortgage rate shoppers. For the best deals, make sure to check out BankingMyWay’s Mortgage Rate Search. Week-to-week, it’s your best bet for finding the best mortgage rate deal possible.
—For the best rates on loans, bank accounts and credit cards, enter your ZIP code at BankingMyWay.com.