Mortgage Rates September 12, 2017

Mortgage rates for September 12, 2017 will start off the day under pressure as the bond market resumes it’s selloff.  On Friday the 10y yield was below 2.05% and today we’re seeing it push as high as 2.15%.  Like yesterday we’re absent of any major economic data and later today there is a 10y auction. As of this morning we’re seeing 30 year mortgage interest ratefixed 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 might be slightly worse compared to yesterday.  

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).  After hitting 2017 record lows last week mortgage rates have come under pressure as the bond market sells off.

The 10y yield started off the day at the 2.15% level and the FNMA 30y 3.5 started off the day at the 103.31 level; however it has quickly moved to 103.39.  It appears some traders are looking at a 2.16% yield on the 10y year as a moderately important ceiling; meaning they expect the 10y yield not to go above that level (or at least if it does it will reverse course back below 2.16%).

If you are looking to refinance your current mortgage or purchase a new home please be sure to give us a call at 1-800-550-5538.

Update:

Comments from Treasury Secretary Mnuchin are adding to the sell pressure in the bond market:

Per Reuters News Wire:

  • U.S. TREASURY’S MNUCHIN SAYS HOPES TO PASS TAX REFORM ON BIPARTISAN BASIS
  • U.S. TREASURY’S MNUCHIN SAYS IF CAN’T GET 60 SENATE VOTES ON TAXES, PREPARED TO USE RECONCILIATION PROCEDURES
  • U.S. TREASURY’S MNUCHIN SAYS HOPEFUL THAT TAX REFORM WILL BE DONE BY END OF 2017
  • U.S. TREASURY’S MNUCHIN SAYS TAX REFORM COULD BE BACKDATED TO JAN. 1, 2017
  • U.S. TREASURY’S MNUCHIN SAYS WANTS TO CREATE TAX RELIEF FOR PASS-THROUGH BUSINESSES
  • U.S. TREASURY’S MNUCHIN SAYS SERVICES INCOME WON’T GET THE BENEFIT OF PASS-THROUGH TAX RATES
  • U.S. TREASURY’S MNUCHIN SAYS TRUMP WILL DEMAND INCREASE IN MILITARY SPENDING IN DECEMBER