Rates Edge Upwards

Since Tuesday when the Fed announced that short term interest rates were being held steady for the foreseeable future, long term interest rates have beed creeping higher. Traders see the low interest rates as benefitting the stock market more than the bond market. When this happens, Wall Street sells bonds, which caused yields (rates) to go higher; and buys stocks.

Currently the rate for a 30 year fixed conforming is still available at 5.875% for a 0 point loan at most lenders with 5.75% available at the market leaders.

We, of course, do business with the market leaders!

New Loan Limits

Freddie & Fannie have announced new higher conforming loan limits for the next year. The old (2003) limit was $322,700. The new conforming loan limit for 2004 is $333,700. People whose loans are less than the conforming loan limit will pay about a quarter point in interest rate for the mortgage rather than a "jumbo" mortgage- those loans over $333,700.