It has continued to creep up over time in reaction to the Fed's moves, ... The difference between the 30-year FRM and the 1-year ARM is only about 1-14 percent, the narrowest it has been since March of 1999, making the 30-year FRM more attractive.
More Quotes from Frank Nothaft:
This is a good sign that housing activity, although slowing from record levels set in the past few years, will continue to remain healthy this year.Frank Nothaft
With economic news continuing to point to a growing economy, the financial markets are beginning to think about the likelihood of inflation again. Not only that, but jobs creation, retail sales, and consumer prices jumped in March which buoyed market speculation that the Federal Reserve Board will raise rates sooner than expected. Add all that to the mix and mortgage rates were bound to rise this week.
Frank Nothaft
With still little or no threat of inflation to be found, long-term mortgage rates this week had some breathing room and that allowed rates to drift a little lower,
Frank Nothaft
Looking ahead into the spring home buying season, we don't expect mortgage rates to rise too much or too quickly in the near term. As a result, housing activity should stay on track for a strong 2005.
Frank Nothaft
Next week the policy committee of the Federal Reserve will meet and our expectation is that it will raise short-term rates by a quarter of a percent. However, we also don't see this increase as having a significant impact on long-term mortgage rates.
Frank Nothaft
Mortgage rates can fluctuate from week to week depending on market conditions and expectations. That is probably what happened this week. Nonetheless, long-term mortgage rates are at about the same low level they were at this time last year. So it isn't surprising that the housing industry continues to thrive.
Frank Nothaft
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