Mortgage rates and the bond market continued their relatively stable pattern this week, experiencing minor fluctuations since the close of last Friday. The market opened today with the following data:

  • 8:33 AM: MBS were down -3bp.
  • 10:00 AM: MBS were down -9bp (UMBS 30yr 5.5 at 100.78), approximately 9bp lower than yesterday at this time.

This morning, the July core PCE price index, which excludes food and energy, rose 0.2% from June, aligning with consensus expectations. Core PCE was 2.6% higher than a year ago, maintaining the same annual rate as last month and reaching the lowest level since March 2021.

July Personal Income increased to 0.3% from June, slightly surpassing the consensus estimate of 0.2%. Consumer Sentiment rose to 67.9, closely matching expectations. The Dow Jones Industrial Average was up 50 points.

Rate Update:

For a 30-year conventional fixed rate mortgage, the par rate is 6.375%/APR 6.563%, based on a $400,000 purchase with a 20% down payment and a loan of $320,000. The P/I payment for this loan is $1,996.

The lowest available rate is 4.875%/APR 5.553%, requiring $17,965 in discount points to buy down the rate. The P/I payment for this loan would be $1,693.