Mortgage Rates October 31, 2017

Mortgage rates for October 31, 2017 are set to start off the day at similar levels seen on Monday as the bond market looks for direction after a solid rally on Monday.  The 10y yield opened the morning trading session at the 2.37% level which is below the 2.42% level we discussed last week.  From here what do we need to see to gain more confidence in mortgage interest ratethis recent rally? A solid break below the 2.35%/2.34% level would add confidence to the current views investors have with respect to the bond market.  Last this week the market is no expecting the President to announce his Fed Chairmen nomination and we have the all important employment numbers (which include wages).  

This morning we had Employment Costs, Employment Wages and Employment Benefits and all three came in higher than the previous month.  We also had the Chicago PMI and Consumer Confidence and these readings also came in higher.  So it’s a good sign for bonds when we have multiple reports coming in higher than expected.  Keep an eye on the Mueller investigation; if that continues to get worse for the President bond yields may fall further as the market will start to believe tax reform will fail.

Currently we’re seeing 30 year fixed mortgage rates remain 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 will be slightly better today as the bond market reverse course from it’s recent uptrend).  Until we start to see bonds stabilize from the selling that started in early September lenders are going to be hesitant to pass along improvements….2 or 3 days of positive trends is not enough; we’ll need to see a week or two of steady improvements in bonds for lenders to feel more at ease about the market.

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).  As mentioned the 10y yield started off the day at the 2.37% level and the FNMA 30y 3.5  coupon started off the day at the 102.83 level.  

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.