Interest Rate Update provided by Grant Hickman, Premier Mortgage

It has been a quiet week for interest rates as markets did not have much new economic data to digest. Stock markets were mostly down on the week on expectations of slower global growth. The Dollar improved versus both the Yen and Euro after Fed Chairman Ben Bernanke commented that core inflation, excluding food and energy, is at the upper end of the Fed’s comfort level. This raised market expectations of another Fed rate hike at their June 29 meeting. The European Central Bank raised its base lending rate by 25 basis points to 2.75%, the highest level in three years.

Next week will be interesting as the market will receive two reports on inflation. Look toward Tuesday’s Producer Price Index (PPI) and Retail Sales, Wednesday’s Consumer Price Index (CPI) and Thursday’s Industrial Production reports 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 6.375% 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 6.50% 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