[ad_1]
Mortgage rates barely moved today after reaching the highest levels in more than a week yesterday. In general, the bond market (which dictates interest rate movements) seems to be stabilizing before the important report on the jobs of tomorrow. And this provides a useful index of potential future volatility.
It is not uncommon for the employment situation (the official name of the employment report) to have the greatest impact interest rate in a given month compared to other regularly scheduled economic reports. Like most economic data, if the results are stronger than expected, higher rates result, and vice versa.
This time, the rates have positioned themselves very close at the limit between the dominant range of 2019 and the recently lower range that started at the end of March. As rates move in and out of different ranges, the initial change tends to accelerate. This suggests that rates are not just able to go up or down quickly … they're planning to do it!
Point of view of the initiator of the loan
Bond markets posted modest gains, with Friday's report on NFPs appearing today. It's nice to see the rates picking up again, but it's still MUCH too early to let our guards down. I lock loans within 45 days unless customers crave enthusiasm. –Ted Rood, lead creator
Most prevalent rates of the day
- 30YR FIXED – 4.125-4.375%
- FHA / VA – 4.0%
- 15 YEARS FIXED – 3.875-4.00%
- ARM 5 YEARS – 3.875-4.25% depending on the lender
Locking / floating considerations in progress
- At the beginning of 2019, overall interest rate and market trends were re-evaluated rapidly.
- The US Federal Reserve has been a key player and, although it is not the one that pulls the strings of the global economy, its reaction to the economy has allowed its rates to decline faster than it would other.
- Based on the Fed's many concerns, its current outlook for rate hikes and economic growth, and changes in bond purchase policy, we've certainly seen the highest rates of this business cycle at the end of 2018.
- The rates discussed refer to the most frequently quoted 30-year conventional fixed rate and the most compliant for senior borrowers among low-cost average lenders. Rates are generally based on a low or zero origin or reduction, unless indicated otherwise. The rates on this page are "effective rates" that reflect daily changes in upfront costs.
[ad_2]
Source link