WeeklyBasis 02/26/07: Recession Warning Drops Rates

Fixed and ARM rates open this week down by .125%, following a recession warning former Fed chairman Alan Greenspan made this morning. His warning was vague and called for the economic slowdown to come later in the year, but it was enough to give us a rate drop. The key focus for this week will be with January’s Existing Home Sales data tomorrow and New Home Sales on Wednesday. Also tomorrow is February’s Consumer Confidence Index, which measures the consumer’s willingness to spend. Since consumer spending makes up two-thirds of the economy, related data is considered important in terms of gauging economic activity. Weaker numbers will bring rates down, but even if rates stay even, it is still good for new borrowers.

Conforming ($200,000 – $417,000) – NO POINTS
30 Year: 6.125% (6.265% APR)
10/1 ARM: 6.375% (6.515% APR)
5/1 ARM: 6.125% (6.275% APR)

Jumbo ($417,001 – $650,000) – NO POINTS
30 Year: 6.25% (6.39% APR)
10/1 ARM: 6.375% (6.515% APR)
5/1 ARM: 6.125% (6.275% APR)