Rates Flat On The Week; CPI Meets Expectations

Interest rates continued to trade in a narrow range this past week. Today’s Consumer Price Index (CPI) for August was within market expectations as both the overall index and core index excluding the food and energy components increased 0.2%. Year over year the overall CPI is up 3.8% and the core CPI is up 2.8%. Most market analysts expect the Fed to leave short-term rates unchanged at next week’s FOMC meeting even though the core CPI is slightly higher than their comfort zone of 1-2% growth. August Retail Sales were stronger than expected and August Industrial Production was weaker than expected.

Crude Oil futures prices dropped again this past week and are currently trading under $63 per barrel. The Dow Jones Industrial Average is up about 170 points on the week.

Next week look toward Tuesday’s Housing Starts and Producer Price Index (PPI) along with Wednesday’s FOMC announcement as potential market moving events.

Current rate for a 30 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 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 6.50% 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