It’s been a somewhat quite week in the bond markets and rates have been fairly stable. With some of the Greece stuff behind us, the markets are now keeping a close eye on more fundamental economic data for its next direction. Over the last several days we have seen the stock market sliding on mixed earnings reports and lower oil prices. This slide has helped mortgage rates a little bit. (remember when money flows out of stocks, they flow into safer instruments like bonds…and more flows into bonds = lower rates- typically). So after rates hitting highs about two weeks ago, they have eased just a bit and 30 year fixed loans are running in the 4.00-4.125% range with zero points. 15 year rates are in the 3.25-3.375% range. Jumbo rates are in the 4.250-4.375% range.
Next week the Fed will be kicking off their two day meeting with their statement due out on Wednesday. We will be keeping an eye on that statement to see if they hint on any further intension regarding a rate hike. GDP for the second quarter will also be reported next week and both of these items could cause some volatility in rates.