Mortgage Rates August 31, 2017

Mortgage rates for August 31st, 2017 remain stable heading into the long holiday weekend.  Yesterday we had the MBA Purchase Index, MBA Refinance Index, ADP National Employment and preliminary GDP.  Today’s data includes Personal Consumption, Core PCE, Weekly Jobless Claims, Chicago PMI and Pending Home Sales.  The mortgage interest ratemonthly Jobs report tomorrow, along with the ISM reading, it’s unlikely we’ll see any significant improvements in the bond market/mortgage rates during the day today.  

As of this morning we’re seeing 30 year fixed mortgage rates below 3.875%, 15 year fixed rates below 3.25% and 7/1 ARM rates below 3.375% (conforming, zero points) – the cost to obtain these mortgage rates is 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).   The 10y yield opened the day at the 2.14% level before moving down to the 2.12% level and the 30y FNMA 3.5 coupon opened the day at the 103.51 level before moving to the 103.6o level.

This morning we had Personal Consumption (stronger compared to last month), Core PCE (inline with expectations), Weekly Jobless Claims (236K), Chicago PMI (58.9 vs 58.5) and Pending Home Sales (tad bit lower compared to last month).  The PCE report is one of the Fed’s favorite inflation gauges.  The year over year measure was actually lower than the previous reading at 1.4%….well below the 2.00% target the Fed currently is pushing for.

If you are looking to refinance your current mortgage or purchase a new home please be sure to give us a call at 1-800-550-5538.  We offer industry low mortgage rates and top notch customer service.

Mortgage Rates May 22 2017

Mortgage Rates for May 22, 2017

Mortgage rates appear to be in a holding pattern to start off the week.  There are no major economic data readings and no major government auctions today so it could turn out to be a quite day.  The 10y yield as a bit higher to start the day (2.25%) and Mortgage Backed Securities (MBS) were a bit weaker as well. One thing we’ll have to keep an eye mortgage interest rateon is any sudden “tape bombs” from the news wires.  “Tape bombs” are market moving news stories that investors were not pre-pared for.  Right now the market seems a bit sensitive to news out of Washington so any news stemming from the various investigations into the Administration might cause the markets to move.  Also Oil is something to keep an eye on; after dropping to low-mid 40’s it’s now back above 50.  Lower oil is generally bond friendly and higher oil prices is potential negative for bonds.  Low California home loan rates will still be around for the foreseeable future however that can change if the market decides to move higher.

Tomorrow we have new home sales and Wednesday brings the MBA purchase index.  Also President Trump has departed from Saudi Arabia and is now in Israel.  He’s on a nearly two week trip visiting various countries before returning home. On Thursday we have the jobless claims number along with the 7y auction.  While the markets are close early Friday we still have some economic data; Durable Goods and GDP.  With the long weekend lenders might be hesitant to pass along improved terms if the bond market improves this week and it’s something we’ll keep an eye.  If you are looking to purchase a new home or refinance your existing mortgage please contact us directly at 1-800-550-5538 for a no cost – no obligation quote.  We offer both fixed rate mortgages and adjustable rates mortgages and we have a top rating with the Better Business Bureau.

News update from Reuters which may affect the bond market: