Mortgage Rates July 26, 2017

Mortgage rates for July 26, 2017 will be similar to levels seen yesterday afternoon.  Tuesday was not a great day for bonds and mortgage terms moved higher as the bond market sold off.  The cause?  Well that’s not exactly clear however it may have to do with traders preparing for the FOMC decision today (in case their are any mortgage interest rateunexpected surprises).

The 10y yield opened the day at the 2.32% level and the 30 year FNMA 3.5 coupon was at the 102.20 level. Generally speaking 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).   Despite mortgage rates moving lower last week; lowest levels seen in weeks, mortgage application volume (per the Mortgage Bankers Association) barely increased.  Overall application volume is down over 20% when compared to the same time period last year.

Later today we the FOMC rate decision and we’ll update the post as needed.  We also have the 5 year auction however that is not expected to play a major role in mortgage rates today.  Most analyst and investors believe the FOMC will not raise rates and are looking to see what guidance they have for  the economy and they are also looking for comments about the balance sheet reduction plan and when that will start.

If you are looking to refinance your current mortgage or if you are looking to buy a home please be sure to give us a call at 1-800-550-5538.  We offer industry low rate, top notch customer service and we have the highest possible rating with the Better Business Bureau.

UPDATE:

The FOMC issue their statement; they did not raise short term interest rates as expected and comments about inflation and the economy were inline with expectations.  A few minutes after the announcement the bond market was slightly improved with the 10y yield at the 2.30% level (at 2.31% just before).

Per Reuters:

RTRS-FED LEAVES TARGET INTEREST RATE UNCHANGED AT 1.00-1.25 PERCENT, SAYS TO IMPLEMENT BALANCE SHEET NORMALIZATION “RELATIVELY SOON”

RTRS-FED SAYS OVERALL INFLATION MEASURES EXCLUDING FOOD AND ENERGY HAVE DECLINED AND ARE RUNNING BELOW 2 PERCENT

RTRS – FED SAYS EXPECTS INFLATION TO REMAIN SOMEWHAT BELOW 2 PCT IN NEAR TERM BUT STABILIZE AROUND ITS 2 PCT OBJECTIVE IN MEDIUM TERM

RTRS – FED REPEATS NEAR-TERM RISKS TO THE ECONOMY APPEAR ‘ROUGHLY BALANCED’ BUT IT IS MONITORING INFLATION DEVELOPMENTS CLOSELY