Fed caught in economic tug of war

Greenspan strategizes how to set 'neutral' cost of money

Inflation data and deepening worries about the Fed’s intentions have taken mortgage rates higher again.

A one-point loan fee (whether called “origination,” or described in plain English) will still get a 5.87 percent 30-year rate, but the low-fee deals are almost to 6.25 percent, up from the March low at 5.37 percent. The adjustable-rate-mortgage market is worse: a point will buy a Fannie/Freddie 5-year at 4.62 percent now, more than a percent north of the March low.