September 28, 2017

Mortgage rates for September 28, 2017 are worse today as the 10y yield moved about the 2.30% level earlier this morning.  Because of this move, in combined with the recent selling in the bond market over the last 7-10 days we’re now seeing 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) – the cost to obtain these mortgage rates are higher mortgage interest ratetoday due to the bond market selloff.  Yesterday we had the MBA Mortgage Index, MBA Purchase Index, MBA Refinance Index, Pending Home Sales and Durable Goods.  And today we had the GDP report and weekly jobless claims (both came in higher than expected).  There was also a 7 year auction.

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 2.33% level before moving above 2.34% yield later this morning.  The FNMA 30y 3.5  coupon started off the day at the 103.00 level however it reversed course and move up to the 103.04 level.  Why the continued selloff? Hard to say; bond traders are cautious and when the selling starts it sometimes continues for no apparent reason other than the cautious nature of bond investors.  California mortgage rates are above their 2017 lows however still very attractive considering that they were near 4.50% earlier this year.

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