The dollar rose on Monday, rebounding from a 2-1/2 week low against the euro as equities rallied and an economic forecasting gauge showed the U.S. economy, while weak, has so far managed to avoid recession. That eased fear about sagging consumer confidence and reassured investors that the Federal Reserve will have room to hike interest rates this year should record high oil prices put upward pressure on inflation.
The dollar's sell-off last Friday was a bit overdone, and now there's a growing view that the Fed's minutes this week will drive home the point that it is done cutting rates. The concern among central bankers now is that inflation is starting to rear its head. What scares people right now is the continued rise in oil prices. Their dollar bullishness is being pared back by the rise in oil prices, as they see OPEC getting more money and putting less into U.S. Treasuries.
Product Rate APR
3/1ARM *5.375% *5.460%
5/1 ARM *5.375% *5.460%
15 Yr. Fix. *5.500% *5.578%
30 Yr. Fix. *5.625% *5.703%
*Rate is based on 20% down payment
*APR is based on $250,000 loan amount