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Mortgage Investors Caught in Fear with the Decrease in the Property Rates

Mortgage Investors Caught in Fear with the Decrease in the Property Rates
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It was proved from the research of Freddie Mac that the home loans taken for thirty years is now going to be dropped from 4.60% to 4.55% as compared to the last week. The rate for both fifteen years mortgage loans and thirty years mortgage loans has now been dropped from 3.78% to 3.74%. The rate is too low as calculated for this year and this is because of the downturn in the economy of the whole world.

The weakness of the US economy can be observed easily from the yield of the bellwether ten-year Treasury notes which was dropped below 3%. It is noticed very first time since the last December and never noticed in the past few years. From April to May, the index ratio of the institute of Supply Management index dropped from 60.4 to 53.5. This is considered as the weakest reading since September 2009. If you find the reading above 50, it means that the manufacturing sector is growing rapidly.

The portfolio manager of TCW Mr. Bret Barker says that the index of the company fell 10.7 points and they never saw this failure since September 2001. Now the index of the company stands at 51.0.  Another survey made by ADP which is also called the payroll processor shows that the jobs added by employers in the month of May were 38,000 while 177,000 jobs were added in the month of April. The Bloomberg News made a survey in this regard and called for the report of ADP to add 175,000 jobs in the month of May.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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