Mortgage rates have remained relatively stable this week following a mixed reaction to continued positive economic data. While the market opened with a slight increase, rates have since declined, ending the week slightly below their starting point.

Market Recap

• Early Trading: MBS prices rose 13 basis points (bps) at the market open, mirroring the positive economic data. Housing starts came in close to expectations.
• Mid-Morning: MBS prices continued to rise, reaching a high of 16 bps above yesterday’s levels. The Dow Jones Industrial Average fell 150 points.
• Afternoon: MBS prices retreated slightly, ending the day 9 bps above yesterday’s levels. The Dow recovered, closing up 40 points.

For the week, MBS prices fell approximately 22 bps.

Economic Indicators

• Housing Starts: September housing starts declined slightly but remained close to expectations.
• Dow Jones Industrial Average: The Dow experienced a volatile week, ending with a small gain.

Market Outlook

Investors are closely watching the Federal Reserve for clues about future monetary policy. The situation in the Middle East also remains a source of uncertainty.

Next Week’s Economic Calendar

• Wednesday: Existing Home Sales
• Thursday: New Home Sales
• Friday: Durable Goods Orders

Current Mortgage Rates

For a 30-year conventional fixed-rate mortgage, the par rate is 6.625% with an APR of 6.822%. On a $400,000 purchase with 20% down, the monthly payment would be $2,049.

The lowest available rate is 4.750% with an APR of 5.622%. However, this rate requires a discount of $23,795 to buy down the rate, resulting in a monthly payment of $1,669.

Note: Mortgage rates and APRs can fluctuate daily. It is recommended to consult with a mortgage professional for the most current rates and to determine the best option for your specific needs.