Mortgage Rates August 23, 2017

Mortgage rates for August 23rd, 2017 are set to start the day at similar levels seen on Tuesday.  Yesterday there was only the monthly Home Prices report and today we have the MBA Purchase Index, MBA Refinance Index, Oil and New Home Sales.  Mid-week we’re seeing 30 year fixed mortgage rates should start the day below 3.875%, 15 year mortgage interest ratefixed rates below 3.25% and 7/1 ARM rates below 3.375% (conforming, zero points) – the cost to obtain these rates will 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 3.00% (conforming, zero points). 

This morning we’re seeing some market movement due to news out of Europe.  England’s Prime Minister stated that they will be leaving the jurisdiction of the European courts.  This is just another step towards England leaving the EU and “Brexit” news, specifically news that England is moving closer to leaving the EU, is generally bond friendly news.

The 10y yield opened the day at the 2.19% level and the 30y FNMA 3.5 coupon opened the day at the 103.28 level. Today we had the MBA Purchase index and MBA Refinance Index along with New Home Sales and Oil.  Overall the data was a bit weaker than expected and along with the “Brexit” news is moving markets lower.  Later in the week we have – Existing Home Sales, Weekly Unemployment, and Durable Goods.  

So if the bond market is moving lower why aren’t mortgage rates?  Good question.  There may be some lenders that improve today however a vast majority of them probably won’t this morning due to the light volume in the bond market and that the move down is not that significant.  If volume picks up and yields continue to move down we may see more improvements later this afternoon.

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