Rates Ease Lower on Deficit, Middle East Turmoil

Interest rates moved slightly lower on the week on a lower than expected budget deficit for fiscal year 2006 and increased turmoil in the Middle East. May’s international trade deficit was lower than expected and today’s June Retail Sales report was weaker than expected. Today’s consumer sentiment index was also weaker than expected. Crude oil futures are trading over $77 per barrel which will continue to pressure inflation at both the wholesale and retail levels. The Dow Jones Industrial Average has lost over 300 points on the week.

Next week look toward Monday’s Industrial Production, Tuesday’s Producer Price Index (PPI), and Wednesday’s Consumer Price Index (CPI) and Housing Starts as potential market moving events. Also, Fed Chairman Ben Bernanke testifies before Congress on Tuesday and Wednesday regarding the economy.

Current rate for a 30 year fixed loan is 6.75% 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 6.625% 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