Mortgage rates experienced another volatile week, opening near last Friday’s closing levels.

Market Analysis

  • Morning: Mortgage-backed securities (MBS) rose by 9 basis points early in the day. The release of weaker-than-expected housing starts data contributed to this upward movement.
  • Mid-morning: MBS gained an additional 3 basis points, bringing the total increase to approximately 9 basis points compared to yesterday. The 30-year mortgage-backed security (UMBS 30yr 5.5) was at 100.50.
  • Housing Starts: July’s housing starts plummeted 7% to an annual rate of 1.24 million units, significantly below the projected 1.34 million. This marks the lowest level since May 2020. The impact of Hurricane Beryl on these figures is uncertain.
  • Rate Update

    For a 30-year fixed-rate mortgage today:

  • Par Rate: 6.50% APR (6.694%) with a $2,023 principal and interest (P&I) payment on a $400,000 purchase with a 20% down payment.
  • Lowest Rate: 4.95% APR (5.632%) with a $1,708 P&I payment. However, this rate requires paying $17,398 in discount points.
  • Note: Rates and terms are based on a $400,000 purchase with a 20% down payment. Actual rates may vary based on individual creditworthiness and loan specifics.