Mortgage Rates June 4, 2018

Mortgage rates for June 4, 2018 are starting off the week at similar levels seen last week when bonds moved to their best levels in months. The 10y yield opened the day at the 2.91% level as we see a continued sell off from the May 29th low hit last week. This morning we had the ISM-New York report which came in stronger than mortgage interest rateexpected. Later in the day we have a Durable Goods report and a Factory Orders report as well. Tomorrow we have the ISM Non-Manufacturing PMI report, Wednesday we have Mortgage Market, Refinance and Purchase reports along with Productivity, Labor Costs and Oil. On Thursday we have weekly Jobless Claims and Consumer Credit. To end the week on Friday we have Wholesale Sales and Inventories.

Currently we’re seeing 30 year fixed mortgage rates BELOW 4.50%, 20 year fixed mortgage rates BELOW 4.25% and 15 year fixed rates BELOW 3.875%.  Mortgage rates for some “A” level borrowers (high credit score, low loan to home value ratio, low debt to income ratio and no cash out) are as low as 4.125% on the 30 year fixed rate loan program (conforming, 1 point), 20 year fixed 3.875% (conforming, 1 point) and on the 15 year as low as 3.50% (conforming, 1 point).  As mentioned the 10y yield started off the day around the 2.91% level and the FNMA 30y 3.5  coupon started off the day around the 99.11 level.

Call us today for a no cost – no obligation quote at 1-800-550-5538.  We offer industry low mortgage rates and have a top rating with the Better Business Bureau and the Business Consumers Alliance.

Mortgage Rates September 15, 2017

Mortgage rates for September 15, 2017  should start off the day at similar levels seen yesterday as Retail Sales came in weaker than expected yesterday’s missile launch by North Korea.  On Thursday there was the Core CPI and weekly unemployment and today we had the Retail Sales report.  As of this morning we’re seeing 30 year fixed mortgage interest ratemortgage rates below 3.875%, 15 year fixed rates below 3.125% and 7/1 ARM rates below 3.375% (conforming, zero points) – the cost to obtain these mortgage rates should be similar to yesterday. 

Mortgage rates for some “A” level borrowers (high credit score, low loan to home value ratio, low debt to income ratio and no cash out) are as low as 3.625% on the 30 year fixed rate loan program (conforming, zero points) and on the 15 year as low as 2.875% (conforming, zero points).  California mortgage rates are slightly higher heading into the weekend when compared to last week but overall still at great levels for 2017.

The 10y yield started off the day at the 2.20% level, moved to the 2.19% level after the Retail Sales report which came in weaker than expected.  FNMA 30y 3.5 started off the day at the 103.30 level.  Next week we the NAHB Housing Market Index, Building Permits, Housing Starts, Existing Homes Sales, FOMC rate decision, Weekly Unemployment and the Philly Fed report.

If you are interested in refinancing your current mortgage or looking to purchase a new home please be sure to give us a call at 1-800-550-5538 for a no cost – no obligation quote.

Have a great weekend!

Fed Comments Mester and Bullard

Cleveland Fed President Loretta Mester on Wednesday spoke to the Community Bankers Association of Ohio in Cincinnati and wanted the Fed to continue it’s gradual pace despite fluctuations in economic and inflation data.  According to Mester; “I see benefits to this consistency: it removes some ambiguity and it underscores the fact that we set monetary policy systematically, with a focus on the medium-run outlook and risks around the outlook and their implications for our policy goals….” 

Mester is not a current voting member however next year she will be so her comments are important when trying to figure future Fed policy.  She expects the economy to grow over two percent next year and is not concerned about recent weakness in some of the economic data reports. 

Mester went on to say “At this point, my assessment is that the conditions remain in place for inflation to gradually return over the next year or so to our symmetric goal of 2% on a sustained basis.”

Also speaking yesterday was St. Louis Fed President James Bullard who also is not a voting member.  He has a different view of future fed policy and according to his statement he would prefer the Fed pause future rate hikes due to the recent low inflation readings.  His interview with Market News said he would not support future rate hikes given the short-term inflation trend in which inflation is moving away from the Fed’s 2% target. 

The Fed’s favorite inflation gauge, Personal Consumption Expenditures index (PCE) has settled around 1.50% rather than the 2.00% target the Fed is trying to achieve.  From mid 2015 up until the end of last year the general trend has been up (moving from just over 1.2% to nearly 2.00%) however in 2017 it has reversed course fairly significantly dropping to the 1.50% level.

Home Prices Up 6.7 Percent CoreLogic June 2017

According to a new report from CoreLogic home prices are up 6.7% (year over year) and 1.1% when compared to May 2017.  Low rates and limited inventory are helping fuel a surge in home values and it does not appear to be slowing down any time soon.  CoreLogic goes on to claim home values are up nearly 50% from the 2011 bottom and four of CoreLogicthe top 10 markets are currently overvalued.

According to their forecast they expect home values to rise over 5.00% between June 2017 and June 2018.  They are also expecting a 0.6% increase from June 2017 to July 2017.  Current mortgage rates are helping fuel the surge in home buying as mortgage rates remain near historic lows.

The report from CoreLogic is inline with other industry reports showing solid increases in home values over the last 12 months.  Labeling four of their top 10 home markets “over valued” shows us that the market is increasingly becoming less affordable for average buyers.  I would expect the number of affordable markets to increase over the next 6-12 months provided supply stays limited and mortgage rates stay low.

Notable Quotes From The Report:

“The growth in sales is slowing down, and this is not due to lack of affordability, but rather a lack of inventory,” said Dr. Frank Nothaft, chief economist for CoreLogic. “As of Q2 2017, the unsold inventory as a share of all households is 1.9 percent, which is the lowest Q2 reading in over 30 years.”

“Home prices are marching ever higher, up almost 50 percent since the trough in March 2011. With no end to the escalation in sight, affordability is rapidly deteriorating nationally and especially in some key markets such as Denver, Houston, Miami and Washington,” said Frank Martell, president and CEO of CoreLogic. “While low mortgage rates are keeping the market affordable from a monthly payment perspective, affordability will likely become a much bigger challenge in the years ahead until the industry resolves the housing supply challenge.”