Wells Fargo Economist Summary:  With the economy showing encouraging signs of improvement, a growing chorus of economists are starting to push the Fed to raise interest rates ASAP.   Others, Fed staff included, are counseling the FOMC to expand its quantitative easing programs.  The interesting thing is both camps are relying on a central bank tool called the Taylor's Rule to justify their position. So who's right? Who knows!  In this week's FMS, we look at the Taylor's Rule controversy and conclude the rule gives central bankers a false sense of security and precision they do not possess. 
Wells Fargo Mortgage Rate:
as of 05/15/2009 10:45 AM

Product Interest Rate APR
Conforming1 Loans
     
30-Year Fixed 4.750% 4.960%
20-Year Fixed 4.875% 5.163%
15-Year Fixed 4.500% 4.862%
5-Year ARM 3.750% 4.029%
Jumbo2 Loans – Amounts that exceed conforming loan limits1
30-Year Fixed 6.125% 6.273%
5-Year ARM 5.125% 4.468%
FHA – loan limits vary by county.
30-Year Fixed 5.000% 5.645%


All rate quotes shown come with one point as an origination fee.

Assumptions and APR Information