Mortgage bond prices rose last week helping mortgage interest rates improve slightly. We started the week on a positive note with rates falling amid tame inflation readings.
While there is growing and well-warranted concern that continuing to keep rates low will lead to inflation down the road…and remember, inflation is the arch enemy of bonds and home loan rates…it does appear that inflation is subdued at present. Last week’s reports showed that the Producer Price Index (PPI), which gauges inflation at the wholesale level, was reported well below expectations and at the largest monthly decline since July 2009. Meanwhile, the Consumer Price Index (CPI), which measures inflation at the consumer level, came in just below expectations for February.
Todays Mortgage Rates:
30 Yr Fixed – 4.75% (1 point) / 4.95% (0 points)
15 Yr Fixed – 4.25% (0 points) /
5 yr ARM – 3.5% (.5 point) / 3.75% (0 points)
7 yr ARM – 3.75% (.5 point) / 4% (0 points)
FHA 30 Yr Fixed – 4.75% (.25 point) / 4.875% (0 points)
FHA 5Yr ARM – 3.625% (1 point) / 4% (0 points)
Investment – 5.125% (.5 point) / 5.25% (0 points) 25% down payment required
*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply