Skip to main content

Every report out today is positive and cause for a bright outlook. The Case Shiller Index shows that home prices rose 12.4% from March 2103 through March 2014.  Consumer Confidence rose from 82.3 in April to 83.0 in May. And lastly, Durable Goods Orders rose 0.8%; better than the -1.3% that was anticipated.  All of this sunny news only substantiates the S&P 500 closing over 1,900 last Friday for the first time ever.  Meanwhile, Mortgage Bonds continue to command 12 -month-high prices, keeping interest rates nice and low.  Thirty year FHA loans are still at 3.75% and Conventional loans are a bit higher at 4.125%. Fifteen year rates are down at 3.25% (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.) Be careful; the rosy picture cannot last forever.