Mortgage Rates August 30, 2017

Mortgage rates for August 30th, 2017 are similar to rates seen yesterday.  On Tuesday we had the CaseShiller reading, Consumer Confidence and the 7yr Note Auction and today we had MBA Purchase Index, MBA Refinance Index, ADP National Employment and preliminary GDP.  The bond market is slightly worse today as investors sell mortgage interest ratebonds following yesterday’s rally.  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 and the 30y FNMA 3.5 coupon opened the day at the 103.47 level.

As mentioned; today we had the MBA Purchase Index, MBA Refinance Index, ADP National Employment and preliminary GDP.  The MBA Purchase Index was a bit weaker compared to last month, the MBA Refinance Index was also weaker when compared to last month.  The ADP National Employment report came in much stronger than expected (237 vs 183) and the preliminary GDP was also stronger (3.0 vs expectations of 2.7).

Will mortgage rates go lower or higher from these levels?  Impossible to say given the uncertainty of the markets.  For mortgage rates to move down we’ll need to see economic data get worse/inflation ease and/or a geo-political risk get worse (like the current North Korean situation).  If you are looking to refinance your current mortgage or purchase a new home please be sure to contact us directly at 1-800-550-5538 for a no cost – no obligation quote.