

For example, are the markets predicting a big rebound in the economy for the second and third quarters? That would mean that the numbers released for economic growth in July will be watched very closely. A paper was recently released by the Federal Reserve Bank in San Francisco which has argued that seasonal adjustments to the numbers had understated growth during the first quarter.
Another factor that helps us explain recent movement in rates is the fact that oil prices are rising. While no one is expecting oil prices at their present levels will spark inflation, for a while last year many were concerned that we could be heading into a period of deflation with oil and other commodity prices plummeting at the time. Now the prices have stabilized and are rebounding slightly. Thus, the deflation factor has been removed from the equation and bond prices are adjusting accordingly. If this is the major factor, the increases should level off. However, if the economy does rebound strongly, we may see continued rate increases.
![]() Current Indices For Adjustable Rate Mortgages
Updated May 22, 2015
![]() ![]() The foreclosure picture continues to brighten, as the number of foreclosures dwindle across the country. Foreclosure inventory dropped 27 percent in February while completed foreclosures fell by 15 percent year-over-year, according to CoreLogic’s National Foreclosure Report. Even bigger: Foreclosures have plunged 67 percent from the peak reached in September 2010. The number of home loans in serious delinquency also has dropped – a good sign that foreclosures will continue to fall. Overall, delinquent home loans dropped 19 percent in February year-over-year. About 4 percent of these loans are now in serious delinquency (90 days or more past due). “Fewer Americans are seriously delinquent in paying their home loans, which in turn is reducing the foreclosure inventory across the country as a whole,” says Anand Nallathambi, president and CEO of CoreLogic. The foreclosure inventory represented 1.4 percent of all financed homes nationwide in February. Still, “while the drop in the share of mortgages in foreclosure to 1.4 percent is a welcome sign of continued recovery in the housing market, the share remains more than the 0.6 percent average foreclosure rate that we saw during 2000-2004,” says Frank Nothaft, chief economist at CoreLogic. Source: CoreLogic |
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