Mortgage Rates October 20, 2017

Mortgage rates for October 20, 2017 are set to start off the day higher as bond yields rise on news the Senate has cleared a major hurdle to tax reform.  Yesterday we had the Philly Fed Index along with weekly Jobless claims and today we have existing Home Sales.  Currently we’re seeing 30 year fixed mortgage rates remain below 4.00%, 15 mortgage interest rateyear fixed rates below 3.25% and 7/1 ARM rates below 3.375% (conforming, zero points) to start the day (the cost to obtain these mortgage rates will be higher today).

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, 1 point) and on the 15 year as low as 3.00% (conforming, 1 point).  The 10y yield started off the day at the 2.36% level and the FNMA 30y 3.5  coupon started off the day at the 102.70 level. 

Why the huge move in yields on news the Senate has cleared a major hurdle on tax reform?  One of the main things bond investors have been worried about since Trump was elected back in November of 2016 is higher deficits.  Higher deficits means more government bonds which means higher yields.  Like bond yields mortgage rates are pushing higher on the news however stocks have had little to no reaction (although they are at all time highs).

Call us today for a no cost – no obligation quote at 1-800-550-5538.  We offer industry low mortgage rates and have a top rating with the Better Business Bureau and the Business Consumers Alliance.