This is going to be a huge week for Mortgage Rates

This is going to be a huge week for mortgage rates.  The economic reports include consumer confidence tomorrow, the Fed meeting on Wednesday, PCE Thursday, and the Employment Report on Friday.  These are all ELEVATED market movers.  The Feds Cut Rate is expected to be lowered -.25% tomorrow.  It is also important to note that Traders will be anxiously deciphering the Feds statements to see if they hint to further Fed rate cuts.  The Feds rate cuts stimulate the economy and increase inflation, the enemy of mortgage bonds. 

Now would be a good time to lock in an interest rate ahead of all this upcoming volatility if the rate and program you want are available.  There is a good chance though that we see 30 fixed rates in the 5′s again by the end of this week.  In January, when rates dropped down to the low 5′s, they came and went quickly, so be prepared to lock.

Mortgage Rates for April 28th, 2008

30 Year Fixed/apr | 6.125%/6.225%

15 Year Fixed/apr | 5.625%/5.725%

3/1 Interest Only [1%]/apr | 5.125%/5.388%

5/1 Interest Only [1%]/apr | 5.375%/5.575%

7/1 Interest Only [1%]/apr | 5.625%/5.825%