Mortgage Rates August 11, 2017

Mortgage Rates for August 11, 2017 will head into the weekend at their best levels of 2017.  This morning’s CPI reading helping mortgage rates start the day at their best levels of 2017.  30 year fixed mortgage rates are below 3.875%, 15 year fixed rates are below 3.25% and 7/1 ARM rates are below 3.375% (conforming, zero mortgage interest ratepoints). Mortgage rates for “A” level borrowers (high credit scores, low loan to home value ratio and low debt to income ratio) are as low as 3.75% on the 30 year fixed loan program (conforming, zero points) and on the 15 year as low as 3.00% (conforming, zero points).

The 10y yield opened the day at the 2.18% level and he 30y FNMA 3.5 coupon opened the day at the 103.22 level. Mortgage rates are benefiting from recent reports showing the economy is slowing.  This morning’s CPI report was another indicator that showed the economy is moving away from the Fed’s inflation target of 2.00%.  Core CPI came in at 0.1 vs expectations of 0.2, CPI month over month came in at 0.1 vs expectations of a 0.2 and Core CPI hit expectations of 1.7.  

Soft inflation is good news for mortgage rates however we must keep in mind that it will take a lot of more “softness” to push mortgage rates lower.  The Fed is targeting a 2.00% inflation rate however over the last 4-5 months we’ve seen the economy move away from that and some are starting to wonder if the most recent Fed hike was the last Fed hike.  The best thing for mortgage rates is stability in the bond market and this most recent report will help support that trend.  

If you are looking to purchase a new home or refinance your current mortgage rate at best terms of 2017 please give us a call at 1-800-550-5538 and ask for Kevin.  We offer industry low mortgage rates and top notch customer service.