Mortgage Rates Predictions  

The Fannie Mae Bond is -3bp on the day @ 99.62.  This morning the CPI Index was better than economist expected.  A modest CPI is a sign that inflation concerns may cool off.  The good inflation news benefited both the Stock and Bond market earlier this morning.  Unfortunately for mortgage rates, the stock market seams to be winning and some lenders have already increased rates this afternoon.  The 200 day moving average continues to be a solid support for bonds and if the Philly Fed Index is weak tomorrow we could see BETTER RATES TOMORROW.  The volatility is absolutely insane though.  If there are any layers or risk to your mortgage [ex. <720 credit, low down payment, ARM, JUMBO...] I still stand by my Lock and Close ASAP recommendation.  Notice the +.5% increase in a number of ARMs in the last couple of days!

Conforming No Points & 1%

30 Fixed  6.125% | 5.875%

15 Fixed 5.750% | 5.500%

7/1 Arm 5.500% | 5.375%

5/1 Arm 5.750% | 5.125%

3/1 Arm 5.625% | 5.000%

30 Fixed FHA 6.250%

15 Fixed FHA 6.375%

Jumbo No Points & 1%

30 Fixed N/A | 7.250%

15 Fixed 7.000% | 6.375%

7/1 Arm 6.875% | 6.375%

5/1 Arm 6.750% | 6.125%

3/1 Arm 6.500% | 5.750%

1/1 Arm n/a | 5.125%