Market News Courtesy of Capital Mortgage Solutions
Posted by Pat Haddad at 1:56 pm. Filed under: General Indianapolis, Mortgage Rates
The collapse of the subprime lending market has spread to the financial markets, sparking fears that tighter credit will have a broader impact on consumers and the economy.
The U.S. government has downplayed the risk of the subprime meltdown spreading. Treasury Secretary Henry Paulson has said the effects are largely contained, and the economy is still strong.
In the financial markets, credit, including corporate bonds, has become harder to get, but Mark Zandi, chief economist of Moody’sEconomy.com, is loath to call it a “credit crunch”. He does admit to a “liquidity squeeze,” however. The difference: In a crunch, nobody can get a loan; in a squeeze, only the riskier borrowers are cut out.
Today’s Rates
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Product Rate APR
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5/1ARM *5.625% *6.785%
7/1 ARM *5.750% *6.910%
30 Yr. Fix. *6.375% *6.435%
