THE BASIS POINT

WeeklyBasis 02/06/06: Last Week’s Reports Keeping Rates Even

Rates open even this week despite a barrage of news and data last week including a Presidential speech, a new Fed Chairman, the 14th Fed rate hike in 19 months, and a slew of big economic reports. It was a volatile week as predicted and rates were higher as of Friday, but concerns about America’s deteriorating relationship with Iran have pushed investors back into bonds today. Bond prices and yields (rates) have an inverse relationship, so when bond buying pushes prices up, it pushes rates down. This week should be relatively flat in terms of rate movement since there isn’t much economic data nor big earnings reports for the market to digest. Also, there’s a wait-and-see attitude with Ben Bernanke taking over for Greenspan at the Fed, so the week could be fairly tame.

Conforming ($200,000 – $417,000) – NO POINTS
30 Year: 6.125% (6.265% APR)
15 Year: 5.875% (6.015% APR)
5/1 ARM: 6.125% (6.275% APR)

Jumbo ($417,001 – $650,000) – NO POINTS
30 Year: 6.375% (6.515% APR)
15 Year: 6.125% (6.265% APR)
5/1 ARM: 6.125% (6.275% APR)