Friday’s mortgage rates experienced a slight decline, ending the week with a modest improvement. This comes amidst mixed economic data and ongoing uncertainty surrounding the Federal Reserve’s future monetary policy decisions.

Market Movements:

• Morning: Mortgage-backed securities (MBS) initially declined, but quickly rebounded.
• Afternoon: MBS prices experienced further declines, potentially leading to unfavorable repricing for borrowers.
• Closing: MBS finished the day lower, with a small amount of unfavorable repricing observed.

Economic Data:

• Core PCE Inflation: Met expectations, rising 0.2% from November.
• Personal Income: Increased 0.4% from November, also matching expectations.
• Dow Jones Industrial Average: Experienced a significant decline.

Key Upcoming Events:

• Next Week: Investors will closely monitor Fed officials’ statements for clues about future interest rate hikes.
• Economic Reports:
  • Monday: ISM Manufacturing Index
  • Tuesday: JOLTS Job Openings Report
  • Wednesday: ISM Services Index
  • Friday: Key Employment Report (jobs, unemployment, wage growth)

Rate Update:

 For a 30 year conventional fixed rate mortgage, the par rate is 6.875%/APR 7.122%, on a $400,000 purchase w/20% down & loan of $320,000 with a P/I payment of $ 2,102. Lowest rate at  4.750%/APR 5.885% with $31,264 in discount points to buydown the rate with a P/I payment of $1,669.

Key Takeaways:

• Mortgage rates experienced a slight decline on Friday, but remain elevated.
• Mixed economic data and uncertainty surrounding the Fed’s actions continue to impact the market.
• Borrowers should closely monitor market movements and consider locking in rates when favorable opportunities arise.

Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or legal advice.