Rate Reductions May Be Over
It seems that the Fed has now tilted towards inflation as a greater problem and will likely not reduce rates at their next meeting. In fact the dollar has been rising in the expectation that rates will rise. Bad weather in Burma (rice) and Australia (wheat) and the Midwest (corn, grain and soy) will boost prices and today oil is $140.00. You may have noticed how fast food has increased....serious stuff, especially for the poor.
30-year fixed-rate mortgage: Averaged 6.32 percent with an average 0.7 point for the week ending June 12, 2008. Last year at this time, the 30-year FRM averaged 6.74 percent. The last time the 30-year FRM was higher was the week ending October 25, 2007, when it averaged 6.33 percent.
15-year fixed-rate mortgage: Averaged 5.93 percent with an average 0.6 point. A year ago at this time, the 15-year FRM averaged 6.43 percent. The last time the 15-year FRM was higher was the week ending October 25, 2007, when it averaged 5.99 percent. Five-year Treasury indexed ARMs: Averaged 5.70 percent this week, with an average 0.7 point. A year ago, the 5-year ARM averaged 6.37 percent.
One-year Treasury-indexed ARMs: Averaged 5.09 percent this week with an average 0.6 point At this time last year, the 1-year ARM averaged 5.75 percent. Meanwhile, news reports on the housing market were mixed.
Serious delinquencies (loans over due 90-days or more or in foreclosure) for both prime and subprime conventional mortgages nearly doubled between first quarter of 2007 and 2008, according to the Mortgage Bankers Association.
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