WeeklyBasis 11/17/03: Best Rate Week Since June’s 40yr Lows

Rates and commentary below are as of November 17, 2003. Rates are down about 0.25% across the board since last week, as investors sold equities (because of terrorism worries and end-of-year tax positioning) and bought safer bonds (driving bond prices up and yields down). This has continued into Monday trading. This week’s main economic news comes Tuesday and Wednesday with the releases of Consumer Price Index (which measures inflation) and Housing Starts (which measures housing sector strength). Both are expected to show modest growth, and have a minimal impact on rates as long as the figures are in line with estimates. Bottom line: this is one of the best rate weeks since the 40-year lows we hit in June.

Conforming ($50K – $322,700K) – NO POINTS
30 Year: 5.625% (5.765% APR)
15 Year: 5.0% (5.14% APR)
5/1 ARM: 4.75% (4.90% APR)

Jumbo ($322,701 – $650,000) – NO POINTS
30 Year: 6.0% (6.14% APR)
15 Year: 5.375% (5.515% APR)
5/1 ARM: 4.75% (4.90% APR)