grauteam update | 2.26.2008 | 30F 6.375% 15F 6% 7/1[1pt] 5.125%

 

Inflation is the hot button this week.  The Producer Price Index came in at a whopping 1.0% putting the overall year over year at 7.4%; the fastest rate of wholesale inflation since 1981!  Consumer confidence was well under estimates and the economy continues to get beat down by the real estate market.  Case-Shiller says home prices fell 8.90% in 2007.  Unfortunately, as we have been warning, inflation concerns have left their mark on long term fixed rates this week.  It is important to note that lowering the Federal Funds rate does not equal lower 30 year fixed rates, as the current market conditions can confirm.

30 Fixed | 6.375% 6.475% apr

15 Fixed | 6.000% 6.100% apr

3/1 I/O Arm | 5.375% 5.475%apr | [1pt] 4.625% 4.996%apr

5/1 I/O Arm | 5.500% 5.600%apr | [1pt] 5.000% 5.375%apr

7/1 I/O Arm | 5.875% 5.975%apr | [1pt] 5.125% 5.500%apr

Jumbo 3/1 I/O | [1pt] 5.125% 5.325%apr

Jumbo 5/1 I/O | [1pt] 5.500% 5.700%apr

Jumbo 7/1 I/O | [1pt] 5.875% 6.175%apr