Interest Rate Update provided by Grant Hickman, Premier Mortgage

Interest rates continue to trade in a narrow range and are mostly flat on the week. April New Home Sales were much stronger than expected although March Sales were revised downward. April Existing Home Sales declined 2.0%, in line with expectations. April Durable Goods Orders showed a substantial decline and April Personal Income was slightly lower than expectations. The Personal Consumption Expenditure Index is up 2.1% year over year, slightly above the Federal Reserve’s comfort range. Inflation concerns may lead the Fed to continue to raise short term interest rates even if the economy slows. The second look at first quarter GDP showed that the economy grew at a 5.3% annualized rate on expectations of 5.8%.

Crude Oil futures are currently trading over $71 per barrel on concerns of supply interruptions from Iran and a decline of crude oil inventories on the week. Prices are likely to continue to remain high as we head into the busy summer driving season.

All markets are closed Monday for Memorial Day. Look toward Thursday’s ISM Manufacturing Index and Friday’s employment report for May as potential market moving events.

Current rate for a 30 year fixed loan is 6.625% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 15 year fixed loan is 6.25% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Current rate for a 5 year ARM is 6.375% with no points based on a $250,000 Purchase Transaction; $187,500 Loan Amount; 10-20% Down.

Posting info and rates provided:

Grant Hickman
Senior Loan Officer
Premier Mortgage Group, LLC
1844 Folsom Street
Boulder, CO 80302
303-449-8855
ghickman@pmglending.com