July 6, 2018
Mortgage rates finally fell today--something that's proven elusive since roughly June 15th. Incidentally, that's when financial markets began bracing for the impact of the tariffs that were made official today. In this case, "bracing for impact" meant that stocks and bonds both moved sideways to slightly weaker.
Theoretically, there was concern among investors about how today might go in the wake of the U.S. and China each officially imposing billions of dollars of tariffs. In practice, markets weren't too troubled. The absence of drama fueled an impressive stock rally and a modest improvement in bonds. The mixed jobs report also helped interest rates moved slightly lower this morning.
Loan Originator Perspective
Both MBS and treasuries closed the week at their best levels in a month after a mixed NFP jobs report. My rate sheets didn't reflect today's gains, so I'll cautiously float new applications until Monday, then reevaluate locking. Have a great weekend! -Ted Rood, Senior Originator
Today's Most Prevalent Rates
- 30YR FIXED - 4.625-4.75
- FHA/VA - 4.25-4.5%
- 15 YEAR FIXED - 4.125%
- 5 YEAR ARMS - 3.75-4.25% depending on the lender
Ongoing Lock/Float Considerations
- Rates have been moving higher in a serious way due to headwinds that cannot be quickly defeated. These include the Fed's increasingly restrictive monetary policy outlook, the increased amount of Treasury issuance to pay for the tax bill (higher bond issuance = higher rates), and the possibility that fiscal stimulus results in higher growth/inflation.
- While we may see periodic corrections to the broader trend toward higher rates, it's safer to assume that broader trend can and will continue. Until that changes, it makes much more sense to remain heavily-biased toward locking as opposed to floating.
- Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.