The bond market and mortgage rates experienced a fluctuating increase this Friday, following the previous week’s closing trends. As the market opened today, MBS rates were up by 9 basis points (bp) at 8:35 AM. This positive movement was partially attributed to core PCE inflation coming in slightly lower than anticipated.

By 10:00 AM, MBS rates had risen further to +16bp, with the 30-year UMBS 5.0 at 100.13. This marked a 16bp increase compared to the previous day’s levels. The weaker-than-expected economic data released this morning provided a boost to MBS rates.

The August core PCE price index, excluding food and energy, increased by only 0.1% from July, falling short of the consensus forecast of 0.2%. Year-over-year, core PCE rose to 2.7%, up from 2.6% in the previous month. Additionally, August Personal Income grew by 0.2% from April, below the expected 0.4%. Consumer Sentiment improved to 70.1, surpassing the consensus estimate of 69.0. Meanwhile, the Dow Jones Industrial Average gained 200 points.

Current Mortgage Rates

For a 30-year conventional fixed-rate mortgage, the par rate stands at 6.125% with an APR of 6.296%. This rate is based on a $400,000 purchase with a 20% down payment and a loan amount of $320,000. The resulting principal and interest payment is $1,944.

If you’re seeking a lower rate, consider purchasing discount points. For instance, you can obtain a rate of 4.750% with an APR of 5.433% by paying $18,035 in discount points. This lower rate would result in a principal and interest payment of $1,669.

Stay Informed

For the latest updates on mortgage rates and market trends, be sure to check back regularly. Understanding these factors can help you make informed decisions when considering a home purchase or refinance.