WeeklyBasis 02/09/04: Rates Remain Steady, Greenspan Talks to Congress

Rates/commentary for the week of February 9, 2004. Rates open this week about .125% lower after Friday’s weaker than expected Employment Report. Current record low rates aren’t likely to spike too soon because there are no immediate signs of inflation. But we also can’t expect rates to fall too much lower because new jobs are still being created and most other areas of the economy are improving. Alan Greenspan will shed additional light on this situation Wednesday when he delivers his economic status report to Congress. His report is key because it is subjective analysis rather than consensus economic estimates already available in the public domain. Also, Thursday’s Retail Sales report, which is a critical measure of consumer spending, will be important now that holiday spending is out of the equation.

Conforming ($50K – $333,700K) – NO POINTS
30 Year: 5.5% (5.64% APR)
15 Year: 4.875% (5.015% APR)
5/1 ARM: 4.625% (4.775% APR)

Jumbo ($333,701 – $650,000) – NO POINTS
30 Year: 5.875% (6.015% APR)
15 Year: 5.25% (5.39% APR)
5/1 ARM: 4.75% (4.90% APR)