Interest Rates Push Higher

Mortgage bond prices fell pushing rates higher last week. Bonds rallied nicely following the Federal Reserve meeting in which they decided to leave rates unchanged. Their statement left out any reference to "additional firming" which was a change from past meetings. However, a spike in oil prices last Thursday changed market sentiment and sent bonds lower and rates higher.

For the week, interest rates on government and conventional loans rose by about 1/8 of a discount point.

The new home sales data will set the tone for trading next week. Consumer confidence, durable goods orders, gross domestic product, income, outlays, and consumer sentiment data will also be important.

30 Year Fixed Conforming: 6.125%
30 Year Fixed Jumbo: 6.250%
5 Year Interest Only: 6.000%
Choice Pay (neg am) 5 Yr: 4.000%

Jo Beth Nicoll, Joe Jayne, Jake Johnson
HomeBanc Mortgage Corp
593.3142