Interest Rate Update provided by Grant Hickman, Premier Mortgage

Mortgage rates continued their climb this week on more inflationary economic data. This morning’s Durable Goods report had a mixed bag, but in general interest rates are reacting negatively. The Durable Goods Orders report shows purchases on order of "durable" or long lasting goods for business and personal use, such as televisions, copy machines and manufacturing equipment. The numbers showed a greater than expected overall decline of 0.3%, but economists were looking for a +0.4% gain. A large 17.9% drop in orders for civilian aircraft was one of the leading causes of the lower number, and when excluding transportation orders, new Durable Goods Orders actually rose 0.7%. But April’s Durable Goods Orders were revised lower, to a greater -4.7% decline from the -4.4% previously reported. So the end result is that business and personal investment remains fairly healthy, even in light of continuing higher borrowing rates.

No news that the FOMC meeting is next Thursday and 25 BP increase in the FF rate is a given (forget any talk about 50 BPs); in the meantime Monday has May new home sales and Tuesday May existing home sales---critical data for the equity and bond markets. Early estimates are for new home sales to have declined 4.0% and existing sales -2.0%.

Current rate for a 30 year fixed loan is 6.875% 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 6.50% 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 6.875% 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