Higher Rates Ahead

The outlook for Manufacturing is bright and sunny this beautiful spring morning. The Philly Fed survey comes in at 16.6, almost double the expected number. For this index, 0.0 represents the break even point, so a reading of 16 is very optimistic indeed.

Initial Jobless Claims show 304,000 Americans filed for Unemployment for the first time last week.  This is lower than the 312,000 expected.

These two bits of data indicate economic growth and put upward pressure on interest rates.

Thirty year FHA loans are still at 3.75% and Conventional loans are a bit higher at 4.25%. Fifteen year rates are 3.375% (APR will be higher, depending on the loan and down payment amounts, and amortization term–as closing costs and the presence of mortgage insurance affect each loan differently.)