Excerpts from HSH Associates newsletter for the week ending July 20, 2007:
Despite downdrafts in key benchmark interest rates, mortgage rates for good-credit borrowers kept rising this week, with the average 30-year fixed-rate mortgage (FRM) posting a 52-week high of 6.88%. Holes in the subprime landscape keep appearing, and investors may be beginning to shy away from even certain good-credit quality mortgages. That disdain for buying loans may be reflected in the spread differential between the 10-year Treasury and the average 30-year FRM. This week, that gap stands at 185 basis points (1.85%), the widest in 17 months, with the implication that investors are demanding higher compensation for risk than they were just a few months ago.
Fixed Rate Variable
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