Mortgage Rates August 1, 2017

Mortgage rates for August 1, 2017 will start the day at similar levels seen yesterday.  Mortgage rates continue to benefit from a stable bond market as we move into the month of August.  As stated in previous posts Mortgage rates prefer a stable bond market over a volatile bond market.  It will be an interesting week with he ADP reading on Wednesday and the BLS jobs report on Friday.

mortgage interest rateThe 10y yield opened the day at the 2.29% level, and after the Personal Consumption reading it moved up to the 2.31% level despite the income component being weaker than expected. The 30 year FNMA 3.5 coupon started the day at the 102.24 level.  So where are mortgage rates starting the day? 30 year fixed mortgage interest rates are below 4.00%, 15 year fixed rates are below 3.25% and 7/1 ARM rates are below 3.50% (conforming, zero points).  

Purchase volume with lenders has been steady for most of 2017 as an active real estate market is helping generate new loans for lenders.  California has been especially active although the volume of transactions is not as high as you might think.  Homes are going fast however there are not a lot of homes on the market so volume remains average to below average in some markets.  Refinancing in California has slowed from 2016 levels however with mortgage rates stable many believe that will start to pick up as we move into the second half of the year.

Later today we ISM reading and we’re curious to see the prices paid component.  If that comes in  weaker than expected that could help bonds as we move into Wednesday and the ADP reading.  With the biggest report coming on Friday, the BLS jobs report, the bond market and mortgage rates might be in a wait and see mode until Friday morning.

If you would like a quote for the refinance of your current mortgage or if you are considering purchasing a new home please call us directly at 1-800-550-5538 for a no cost – no obligation quote.  We have a top rating with the Better Business Bureau (A+) and industry low mortgage rates.