Todays Mortgage Rates:
30 Yr Fixed – 5.00% (1 point) / 5.25%(0 points)
15 Yr Fixed – 4.375% (1 point) / 4.625% (0 points)
FHA – 5% (1 point) / 5.75% (0 points)
Investment – 5.375% (1 point) / 5.75% (0 points) – at least 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
“I DON’T KNOW WHY I GO TO EXTREMES.” Billy Joel. Last week, Bonds went to the extremes of their trading range, battling tough layers of technical resistance as they attempted to improve. Let’s take a closer look, and understand the news of the week.
There was good news on the inflation front as the Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditure Index (PCE), indicated that inflation remained tame last month. Generally tame inflation is a good sign for Bonds – but there is still concern, as inflation is certainly coming…it’s just a matter of when.
Keep in mind that some of the current buyers are adding a bit of what may be an artificial boost to the housing numbers, as they normally would have purchased in 2010 but have moved up their buying decisions to take advantage of tax credits and historically low rates. Let me know if you would like more information on these time-sensitive tax credits.
Remember, positive economic news typically causes money to flow from Bonds to Stocks, causing Bonds and home loan rates to worsen. However, even with the pressure of more supply from last week’s Treasury auctions, Bonds and home loan rates were able to hold on to some improvements and end the week very slightly better than where they began.