Mortgage Rate Hike for the 6th Straight Week!

My, my... when will it end?

Because of economic growth and investors realizing that the Feds aren't planning any interest rate cuts anytime soon, rates are now the highest it has been in 10 months.  Additionaly, Fed Chairman Ben Bernanke warned us of inflation: "Although core inflation seems likely to moderate gradually over time, the risks to this forecast remain to the upside."

According to a national survey of large banks, these are the average rates:

30 yr fixed @ 6.61%, 15 yr fixed at 6.33%, 5/1 ARM @ 6.52%, 1 yr ARM @ 6.17%.  These are with an average of .26 points.  Rates can be lowered by paying more points.

I have played the waiting game the last 2 weeks hoping for a rate decrease before locking in a clients rates.  The gamble hasn't paid off for me!   So if you have clients on the fence, tell them that you don't know what tomorrow brings but during the last 6 weeks the rates have gone up, not down...

Pete