The Decreasing Cost of Stuff.

Freddie Mac calculates that prices of homes across the country will have risen an average of 4.5% this year, and expects that gain to continue to moderate through 2015.  Home prices aren’t the only thing that have seen attenuation this year, the following graph shows how the cost of goods and services as a whole has declined over the last few months:

 

CPI

Thirty year rates for FHA are at 3.25% and conforming conventional loans are at 3.875% today, while 15 year rates are down at 3.0%. (APR will be higher, depending on the amortization term, and the loan and down payment amounts–as closing costs and the presence of mortgage insurance affect each loan differently).