Mortgage Rates September 11, 2017

Mortgage rates for September 11, 2017 are starting off the week a bit worse than Friday as the bond market reverses course.  On Friday we had Wholesale Inventories and Consumer Credit and today there are no major economic data points on the calendar.  This morning the bond market started off worse when compared to Friday’s levels however mortgage interest ratethe selling was not much of a surprise. Over the last 3 months bonds have rallied and that rally intensified last week.  Nothing improves day in and day out so today’s selling is to be expected.  If it continues the rest of the week; that would be cause for concern.

As of this morning we’re seeing 30 year fixed mortgage rates below 3.875%, 15 year fixed rates below 3.125% and 7/1 ARM rates below 3.375% (conforming, zero points) – the cost to obtain these mortgage rates will be slightly worse compared to last week.  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, zero points) and on the 15 year as low as 2.875% (conforming, zero points). 

As the 10y yield inches closer to a 2.00% yield we may see more volatility like today since that is a significant psychological trading level for bond traders.  Meaning that bond traders may get nervous with any attempts to break below a 2.00% yield and thus start selling bonds to lock in profits out of fear that bonds may no longer rally below 2.00%.

If you would like a quote for a refinance or the purchase of a new home please contact us directly at 1-800-550-5538.