What to say about mortgage rates?  Well, mortgage rates were little changed this week, which is actually a good thing, considering that the homebuyer tax credit expired recently. Starts on one-family homes fell 17 percent to an annualized pace of 468,000 units in May from April’s 20-month high. In addition, permits on one-unit homes fell to the slowest pace since May 2009. But, considering the expected downturn after the expiration of the tax credit, the market is holding stable.

Nonetheless, household balance sheets have been improving over the past four quarters. Basically, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve. In addition, homeowners have regained $1.1 trillion in home equity over the same time period.  For homeowners, things are on moving in a positive direction.

Conforming Loan Limits ($417,000 and Under)

Loan Program            Interest Rate            Points

30 Year Fixed                  4.500%                           1.000

10/1 ARM                         4.250%                           1.000

5/1 ARM                           3.500%                           1.000

5/1 ARM I/O                   3.500%                           1.000

Jumbo Loan Limits ($729,751 and Over)

Loan Program            Interest Rate            Points

10/1 ARM                         5.250%                           1.000

7/1 ARM                           4.875%                           1.000

5/1 ARM                           4.250%                          1.000

Agency Jumbo Limits ($417,001 – $729,750)

Loan Program            Interest Rates            Point

30 Year Fixed                   4.750%                            1.000

Money Rates

M11                                      M21

10 Yr Bond                           3.18

Prime                                     3.25

6 Month Libor                     0.75188%