Starting out this week we already have a locking bias, which means if you are currently floating a rate, today’s trends suggest locking in your rate as there are a couple of market movers today.
Market Mover #1: Massachusetts Senate Seat
The first potential market mover is the battle unfolding in Massachusetts for the Senate seat between Republican Scott Brown and Democrat Martha Coakley. With a Republican victory would give the Republicans 41 seats to the Democrats 59 eliminating the Democrats “Super Majority” position. Should Brown win the stock market should respond favorably which pulls money out of Mortgage Bonds. Money out of bonds means a rise in mortgage rates.
Market Mover #2: UK and India’s Higher than Expected Inflation
Another event that can push rates this is week are the reports from the UK and India about higher than expected inflation. The report states that both countries expect their levels of inflation to continue to grow and also see inflation happening worldwide. As we’ve discussed before, mortgage interest rates and inflation have a hate/hate relationship. Inflation goes up, mortgage rates go up.
Today’s Mortgage Rates
| Loan Program | Interest Rate | Points |
|---|---|---|
| 30 Year Conforming Fixed | 4.875% | 1 point |
| 5 Year Conforming Fixed | 3.75% | 1 point |
| 30 Year Conforming FHA | 4.875% | 1 point |
| 5 Year Jumbo | 5.00% | 1 point |
| 10 Year Jumbo | 5.375% | 1 point |
| CalSTRS 30 Year Fixed | 5.00% | 1 point |
| CalSTRS 15 Year Fixed | 4.375% | 1 point |
| CalSTRS Conforming 80/17 | 5.375% | 1 point |
| CalSTRS Non-Conforming 80/17 | 6.375% | 1 point |
Rates and loan programs are as of January 19, 2010 at 1:00 p.m. PT and may change at any time. To see rates that I’m quoting live visit me on Twitter @ChrisWilliamson.
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