WeeklyBasis 09/15/03: Guns + Butter = Trouble

The rate snapshot below is for reference for the week of September 15, 2003. Rates this week are holding at about 0.25% lower than in recent weeks. On a $600k loan, this is about $100 per month in savings. No rate moves are expected from Tuesday’s Federal Open Market Committee meeting. The next three months will be critical for the economy, with retail sales being one of the most-watched indicators. This is when we will see whether the Bush administration’s tax incentives actually help consumer spending and if the ever-increasing Iraq budget counteracts other stimulus plans. Goldman Sachs’ chief economist pointed out that this “guns AND butter” fiscal policy may lead to trouble.

Don’t forget about the “Residential Pacific Mortgage 15 Day Close.” My internal bank (which serves only RPM loan agents) will close your clients’ loans in 15 days, or all mortgage banking fees will be waived … Call me for more details.

Conforming ($50K – $322,700K) – NO POINTS
30 Year: 6.0% (6.14% APR)
15 Year: 5.25% (5.39% APR)
5/1 ARM: 4.875% (50.25% APR)

Jumbo ($322,701 – $650,000) – NO POINTS
30 Year: 6.25% (6.39% APR)
15 Year: 5.625% (5.765% APR)
5/1 ARM: 4.875% (5.025% APR)