
Friday Mortgage Rate Update: Rates Steady Amidst Mixed Economic Signals
Mortgage rates remained relatively stable this week despite the release of several key economic data points. The market opened with a slight increase in mortgage-backed securities (MBS) and continued to fluctuate throughout the day.
Market Movements:
- Morning: MBS prices rose significantly, indicating a potential drop in rates.
- Midday: Prices experienced a sharp decline, pushing rates higher.
- Afternoon: Prices rebounded, with some favorable repricing observed.
- Closing: Rates ended the day slightly higher than the previous week.
Key Economic Data:
- Existing Home Sales: Increased slightly, exceeding market expectations.
- Global Services PMI: Declined sharply, below consensus forecasts.
- Consumer Sentiment: Fell below expectations.
- Dow Jones Industrial Average: Experienced a modest decline.
Factors Influencing Rates:
- Continued Positive Economic Data: While some indicators were mixed, overall economic strength continues to support the Federal Reserve’s stance on potential future interest rate hikes.
- Upcoming Fed Meeting: Investors will closely watch the upcoming Federal Reserve meeting for guidance on future monetary policy.
- Key Economic Releases: Upcoming releases of New Home Sales, GDP, and the PCE price index will provide further insights into the economic outlook.
Rate Update:
For a 30 year conventional fixed rate mortgage, the par rate is 7.000%/APR 7.189%, on a $400,000 purchase w/20% down & loan of $320,000 with a P/I payment of $ 2,129. Lowest rate at 4.750%/APR 5.918% with $33,307 in discount points to buydown the rate with a P/I payment of $1,669.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or legal advice.