The bond market went down every single day last week and ended the week 156 points lower than where it started.  This is pushing rates up dramatically – 30 year fixed into the 5%’s.  The ARM loans are still pricing great – in the 3%’s.  The best loan I am seeing on the market right now is a 15 year fixed FHA loan at 4.25% with 0 closing costs.  I can get that for most customers right now – great fixed rate with no costs. 

The general trend we are seeing is that rates are rising and will continue to rise.  The world no longer has a great appetite for US Treasury Bonds.  The bonds sell off is pushing rates higher.  What you will notice is that some weeks pricing will get marginally better, but when they get worse – they get worse by a lot.  When they get better, costs may go down .25% – .375%.  

We have been predicting this for some time – when the economy begins to improve – rates will rise , they have to.  What we are seeing is better reports on jobs, home sales, corporate profits, etc.  If this continues , rates will continue to go up.