Mortgage rates saw an upward trend today, continuing the rise observed since last Friday. This comes despite a generally quiet holiday week with limited economic data releases.

Market Overview:

• Morning: The market opened with Mortgage-Backed Securities (MBS) prices down 3 basis points (bps).
• Mid-Day: MBS prices remained largely unchanged, hovering around the morning levels.
• Afternoon: The Dow Jones Industrial Average experienced a significant decline of over 330 points.
• Closing: MBS prices ended the day down 3 bps, with the 30-year fixed-rate mortgage (FRM) at 5.5 at 98.47.

Rate Impact:

• For a 30-year conventional fixed-rate mortgage on a $400,000 purchase with 20% down, the par rate is currently 6.999% with an APR of 7.187%. This translates to a principal and interest (P&I) payment of $2,129.
• The lowest available rate is 4.750% with an APR of 5.857%. However, this requires purchasing $31,392 in discount points to buy down the rate, resulting in a P&I payment of $1,669.

Key Takeaways:

• Mortgage rates have increased significantly this week, impacting borrowing costs for homebuyers.  
• The decline in the Dow Jones Industrial Average may have contributed to the negative market sentiment.
• While some repricing was observed yesterday, the overall trend remains upward.

Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or legal advice.