A lot has happened since last weeks update: Rates are at the lowest level of 2011. I can get a rate of 4.625 on a 30 year with no origination fee or discount fee, a 15 year a 3.75% with no origination fee or discount fee.
Where are we going from here? Starting June 1st QE2 will stop – which many believe will raise rates. However last time quantitative easing was stopped rates raised a bit at first, but then they came back down because of outside investors coming into that market.
Debt Ceiling debate is also on the table – how that plays out will not only effect mortgage rates but the economy as a whole.
Inflation: in a surprise move the European central bank did not raise their rates. They are concerned about inflation in Europe, but didn’t raise rates because of the slow economy. They said are trying to keep rates low and money flowing, rather than worry about inflation in the future. However this is important to watch – cause inflation will have a huge impact on interest rates.
Rate will probably hold where they are – the lowest of 2011 — thru May.
