WeeklyBasis 07/12/05: Unemployment at Four-Year Low, Rates Rise

Since coming down the last week in June, fixed and ARM rates are back up about .25% this week. Much of this increase came after Friday’s employment report which showed a four-year low for unemployment. This improved jobs picture is a signal of a stronger economy, and this causes investors to dump bonds for stocks. When this happens, bond prices sink and yields (or rates) rise. This week we will see Consumer Prices and Producer Prices, which are both important inflation measures. If we see inflation looking like a threat, we can expect that markets will continue their trading trend from Friday, which may push rates higher.

Conforming ($200,000 – $359,650) – NO POINTS
30 Year: 5.625% (5.765% APR)
15 Year: 5.25% (5.39% APR)
5/1 ARM: 5.5% (5.65% APR)

Jumbo ($359,651 – $650,000) – NO POINTS
30 Year: 5.875% (6.015% APR)
15 Year: 5.375% (5.515% APR)
5/1 ARM: 5.5% (5.65% APR)