Mortgage Rates September 18, 2017

Mortgage rates for September 18, 2017 are starting off the day a bit worse compared to last week as the 10y yield pushes above 2.23% for the first time since early/mid August.  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 mortgage interest ratepoints) – the cost to obtain these mortgage rates should be similar to yesterday. On Friday of last week we had the Retail Sales report and today we had the NAHB Housing Market Index.

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).  California refinance rates are slightly worse to start he week but overall still at great levels for 2017.

The 10y yield started off the day at the 2.21% level, moved to the 2.23% level later in the morning.  FNMA 30y 3.5 started off the day at the 103.25 level and currently sitting at the 103.16 level.  Today we  had the NAHB Housing Market Index which was a bit weaker than expected and later in the week we have – Building Permits, Housing Starts, Existing Homes Sales, FOMC rate decision, Weekly Unemployment and the Philly Fed report.  

With the FOMC decision on Wednesday government and mortgage bonds will struggle to find a ceiling on this recent move up in yield.  Although no one expects the Fed to raise rates; investors are always cautious heading into a Fed meeting.  And perhaps an even bigger concern is what is the Fed going to say about their short, medium and long term views and plans for the economy.

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 for a no cost – no obligation quote.