Market Update

Lenny Holler of Preferred Empire Mortgage's Weekly
Market Update 8/21/06

RATES DOWN SHARPLY AS INFLATION MODERATES

"Inflation reports for the week were more moderate than expectations helping the stock and bond markets to surge. Tuesday's report on July producer prices (PPI) showed an increase of only 0.1% with core inflation down 0.3%. Wednesday's Consumer Price Index (CPI) provided more good news regarding the prospects of inflation. The 0.2% increase in core inflation in July was a reduction from the 0.3% readings of the previous four months, an indication that inflation may have slowed, if the trend continues. Industrial Production, New Residential Construction and the Index of Leading Indicators all came in weaker than expected giving further proof that the economy is moderating."

Coops & Condos Upto $1,000,000

3/1 Year Arm 5.750% (Down)
5/1 Year Arm 6.000%
7/1 Year Arm 6.125% (Down)
10/1 Year Arm 6.500%
15 Year Fixed 6.250% (Down)
30 Year Fixed up to $417,000 6.250% (Down)
30 Year Fixed $417,000-$1,000,000

interest only products on Arms* Add .125% - .25% to rate