Interest Rate Update provided by Grant Hickman, Premier Mortgage

Interest rates have improved slightly over last week mainly due to a weaker than expected May employment report. Friday, the Labor Department reported that non-farm payrolls increased by 75,000 during May on expectations that the economy added 170,000 new jobs. March and April non-farm payrolls were revised downward by a combined 37,000 jobs. Average Hourly Earnings increased 0.1% on expectations of 0.3%. Markets now think the Fed may leave short term rates unchanged at their June Meeting.

Other economic reports of note include the Chicago Purchasing Managers Index which was stronger than expected. First quarter productivity was revised upward to 3.7% from 3.2% and first quarter unit labor costs were lower to +1.6%. Year over year productivity increased 2.2% and year over year unit labor costs increased just 0.3% easing concerns of wage inflation. The ISM Manufacturing index was also weaker than expected.

Crude oil futures continue to trade over $70 per barrel. The Dollar is losing ground versus both the Yen and Euro on the increased probability the Fed may leave rates unchanged at their June meeting which will make the road to lower rates more difficult for bonds.

Next week look toward Friday’s trade deficit report as a potential market moving event.

Current rate for a 30 year fixed loan is 6.50% 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 by:

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