THE BASIS POINT

WeeklyBasis 08/01/05: Rates Still Historically Low

 

Rates open this week up another .125% across the board, bringing the 4 week total to about +.45%. Last week I said Friday’s 2Q GDP (economic growth) figures would help determine whether rates would keep moving up or not. GDP was 3.4%, right at expectations. But the hot housing and manufacturing data caused investors to perceive good things for the economy even though GDP was flat. Markets have more to feed their perception this week with inflation data Tuesday and jobs growth data Friday. More positive manufacturing data came out this morning and bond rates (a barometer for mortgage rates) are already up. So if Tuesday and Friday are positive, we’ll see rates in the range show below for awhile. But remember, perception applies here too: these rates may sound higher to you, but they’re still uncharacteristically low by historical standards.

Conforming ($200,000 – $359,650) – NO POINTS
30 Year: 5.875% (6.015% APR)
15 Year: 5.5% (5.64% APR)
5/1 ARM: 5.625% (5.775% APR)

Jumbo ($359,651 – $650,000) – NO POINTS
30 Year: 6.125% (6.265% APR)
15 Year: 5.625% (5.765% APR)
5/1 ARM: 5.625% (5.775% APR)

 

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