THE BASIS POINT

WeeklyBasis 04/30/07: Rates Volatile on Economic Data

There were no WeeklyBasis reports the past couple weeks, because I have doing some longer-form writing about the markets for my company’s quarterly newsletter and for a real estate magazine. If you want to receive my newsletter, please let me know. And attached is a copy of a piece I wrote for the June issue of Broker/Agent magazine. Rates are up about .25% in the past two weeks, due mostly to stronger corporate earnings causing investors to sell bonds and buy stocks. When bond prices drop in a sell-off, bond yields (or rates) rise. This week will be volatile given a full slate of economic data. Rates dropped about .125% this morning when April Consumer Spending data came in at its weakest in six months. The biggest release this week is Friday’s Jobs & Wage Growth report. This always moves markets because the job count measures consumer strength and the wage figure measures inflation.

Conforming ($200,000 – $417,000) – NO POINTS
30 Year: 6.25% (6.39% APR)
10/1 ARM: 6.25% (6.39% APR)
5/1 ARM: 6.25% (6.4% APR)

Jumbo ($417,001 – $650,000) – NO POINTS
30 Year: 6.25% (6.39% APR)
10/1 ARM: 6.5% (6.64% APR)
5/1 ARM: 6.25% (6.4% APR)