Mortgage Rates October 3, 2017

Mortgage rates for October 3, 2017 are set to start the day at similar levels seen seen yesterday however that could quickly change if the bond market continues to sell off.  For nearly a month now the bond market has seen a wave of selling that has pushed the 10y yield from the low 2.00% level to 2.35%.  We’re expecting to see 30 year fixed mortgage interest ratemortgage rates below 4.00%, 15 year 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 should be similar to Monday).  Monday we had ISM Manufacturing and Construction Spending (both came in stronger than expected).  Today we have Car Sales and later in the week we have ADP Employment and the BLS Employment report (among others).  The expectations for ADP and BLS are really low; analyst are only expecting ADP to show job growth in September at 130,000 jobs and the BLS Employment expectations are only at 93,000.  

Mortgage rates remain above their 2017 lows however they remain below their 2017 highs.  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 3.75% on the 30 year fixed rate loan program (conforming, zero points) and on the 15 year as low as 3.00% (conforming, zero points).  The 10y yield started off the day at the 2.34% level and then moved higher to 2.36%.  The FNMA 30y 3.5  coupon started off the day at the 103.06 level.