Sellers Lowering Their Prices Less:
With home prices beginning to flatten in many areas around the country, home sellers are slowly gaining ground in their quest to hold on to their asking price.

A new report from Trulia.com finds that of all homes on the market today, 21 percent have seen at least one price reduction.  That’s the second straight month that percentage has declined.

Remember, the ultimate reduction in selling price is really through historically low mortgage rates and tax deductions.  Don’t wait too long expecting the price of your dream home to come down.  The market has turned.

What Happened to Rates Last Week:

Mortgage Rates Chart showing from 7/20/09-1/11/10

Mortgage backed Securities rose +44BPS last week helping to lower 30 year fixed mortgage rates slightly.  We traded sideways for most of last week but made some nice gains on Friday due to a mild CPI reading and weaker than expected Retail Sales.

The following are the major economic reports that will hit the market this week.  They each have the ability to affect mortgage rates.  We will watch these reports closely for you and let you know if there are any big surprises.

What to Watch Out for this Week

We know you are busy and it is virtually impossible for you to keep track of what is going on in the economy.  We monitor the trading of Mortgage Backed Securities; the only thing conventional and government mortgage rates are based upon.  So, we know if there is going to be a trend reversal in mortgage rates.

Please call on us any time for an industry update.

Respectfully,

Walden Mortgage Group
859-514-4444