Mortgage Rates October 4, 2017

Mortgage rates for October 4, 2017 are looking to start the day slightly improved as the bond market reverses course from recent selling. We’re expecting to see 30 year fixed mortgage 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 interest ratemortgage rates should be similar to Tuesday).  Tuesday we had the Car Sales report and later in the day we have ADP Employment along with the ISM report.  On Friday we have the BLS Employment report.  As mentioned yesterday 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 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 2.30% level and the FNMA 30y 3.5  coupon started off the day at the 103.20 level.

It’s been a rough 4 weeks for bonds after hitting 2017 lows in early September however it appears the market might be hitting a top as yields move down from recent highs.  California refinance and California purchase loan volume remains low when compared to previous years despite the fact that mortgage rates remain less than a 1/2 point from all time lows.

If you are looking to refinance your mortgage our purchase a new home please be sure to give us a call at 1-800-550-5538 for a no cost – no obligation quote.