Friday Mortgage Rate Update: Rates Remain Steady, PCE Inflation Meets Expectations
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.