MORTGAGE RATES RISE WITH HUGE WEEK ON WALL STREET: Last week, Wall Street had its best week in over 2 years. When stock prices go up, the bond market goes down and interest rates rise. The bond market closed 141 bps down on the week.
Keep an eye on the stock market if you are floating a rate or still deciding whether to start a new loan. If the Greece situation gets worked out, we could see rates rise further. I expect some pull back on rates and pricing in the next week. Usually when rates go far one way, you will see a partial rebound back the other way.
Right now 30 year fixed par rates start out at 4.75%. 20 year fixed rates start at 4.25%. 15 Year fixed rates start at 3.75%. 5/1 ARMs start at 2.875%.
