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.