Rate Watch

FHA 30 year rates are ranging between 3.875% ( 3.9% APR) and 4.125 % ( 4.33% APR) depending on points paid. The bottom line is that home loan rates are still near historic lows, which makes now a great time to purchase a home!

Forecast for the week:

The economic calendar was extremely light last week, but look out this week! The markets are set for a slew of reports that will give us a look at the economy across many sectors.

  • Manufacturing news from the Empire State Index (on Tuesday) and Industrial Production (on Wednesday) will be closely watched this week for any signs of a pickup.
  • After his comment last week, Fed Chairman Bernanke will be listening with both ears for any increase in inflation when the Consumer Price Index (CPI) and Producer Price Index (PPI) are released. Look for the PPI report to be released Tuesday, followed by the CPI report on Wednesday.
  • Also on Tuesday, we will see how the consumer is holding up when the Retail Sales report is released.
  • Rounding out the week, Initial Jobless Claims will be delivered on Thursday. Last week's report fell below the 400,000 level, which is a good sign but one week doesn't make a pattern.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, the markets continue to be volatile, though home loan rates are still near historic lows. As always, I'll be monitoring this situation closely.