Market Brief:

1 st quarter GDP growth was lower than the master of the market universe thought. Amazing! 1.3 percent growth. 1% of growth was lost due to shrinking of the housing market. Consumer spending was lame and the price in consumer goods did not move much, but HEY! Gas shot off like a rocket and whether this was caused by refinery problems or because of the underlying risk in the oil markets is smoky at best. And remember, that oil is infused into thousands of products from plastic to food, therefore affecting the prices of many consumer products.

 

What’s happening in mortgages ?

Refinancing applications were 53% of mortgage applications during December 2006.

Refinancing applications were 42% of mortgage applications during April, 2007.

According to Freddie Mac a majority of refinancing involved homeowners extracting equity from their homes.

Here are the average interest rates in the Northeast

 

Fixed Rate Mortgages

Average Conventional 30-year Commitment Rate – 6.19%

Fees and Points – 0.2%

Average Conventional 15 – year Commitment Rate – 5.95%

Fees and Points – 0.2

 

5/1 – Year Adjustable – Rate Mortgages

First Commitment Rate – 5.91%

Fees and Points – 0.3

Margin – 2.76

 

One – Year Adjustable Rate Mortgages

First Commitment Rate – 5.50%

Fees and Points – 0.6

Margin – 2.75

 

Source: Freddie Mac