Fannie Mae reports that the average 30 year interest rate being originated out there right now is 3.83%, up from 3.82% last week. Where rates have been at 3.625% or better for at least a month, that higher average rate is accounted for by a combination of perhaps four things:
1. no cost loans
2. investment properties
3. bad credit
4. applicants getting ripped off
As long as we are making lists, there are two items of note in the news today. The first is that Existing Home Sales are up 5.1% from last month at an annual rate of 5.33 million units. That annual rate was just above expectations by 300K.
Secondly, the oil worker strike in Kuwait appears to be coming to a close, which is causing oil prices to settle back down. Money is coming out of oil and into more liquid (ironic pun intended) assets such as Stocks and Bonds, which are both marginally positive on the news. That’s what you might call the domino effect.
