Friday Mortgage Rate Update: Rates Rise Amidst Economic and Market Fluctuations
Today, mortgage rates have seen a rise following continued positive economic data and some fluctuations in the Bond Market. Let’s dive into the specific details and how these factors have impacted current rates.
Economic Data and Market Trends
- PPI Inflation: The Producer Price Index (PPI) for September matched expectations, coming in at 10:00 AM. This data led to a further decline in Mortgage-Backed Securities (MBS) by 9 basis points.
- Consumer Sentiment: Consumer sentiment took a hit, falling to 68.9 from the consensus estimate of 71.0. This indicates a slight decrease in consumer confidence.
- Dow Jones: The Dow Jones Industrial Average saw a positive surge, gaining over 200 points.
Current Mortgage Rates
For a 30-year conventional fixed-rate mortgage, the par rate is currently at 6.625% with an APR of 6.834%. This is based on a $400,000 purchase with a 20% down payment and a loan amount of $320,000. The resulting monthly principal and interest payment would be $2,049.
If you’re looking for a lower rate, you can still find options. The lowest rate currently available is 4.750% with an APR of 5.622%. However, this rate requires a discount of $23,475 in points to buy down the rate. The corresponding monthly principal and interest payment would be $1,669.
As the economic landscape continues to evolve, mortgage rates are subject to fluctuations. It’s essential to stay informed about the latest trends and consult with a mortgage professional to make informed decisions about your home financing needs.