Clients always ask us what mortgage interest rates are doing because it effects home purchase affordability. In an effort to provide them with the most accurate information and leading insight into the lending side of things, we have published iMortgage’s “Weekly Interest Rate Update”.
Weekly Interest Rate Update from Direct Lender iMortgage
Last Week: Mortgage rates hit their highest levels in more than 2 years this week on Monday and again on Thursday. The intervening days were of little solace, but Friday not only brought rates to their lows of the week, but also just a hair below last Friday’s latest reading. The most prevalent 30yr fixed rate is now between 4.625% and 4.75%, though it had been as high as 4.875% at some points last week. What happened on Friday to bring the rates back lower? Well, when the New Home Sales data was released on Friday, we saw a rally in the Mortgage Backed Securities market. This report normally doesn’t have that much of an impact, but this report was awful compared to all of the other positive economic news. This report alone was not the main reason, however, as most investors saw the poor news as a reason for the Fed to hold of Tapering come September.
This Week: It’s important to know that what we saw on Friday was not a trend reversal, but instead a rally based upon conjecture and not actual Fed policy. We could very easily see this evaporate early next week. We are keeping a close eye on the jobs report coming out this week to give proper direction to our buyers. Moving forward, we may continue to see rising rates have a direct impact on the number of buyers in the marketplace.
For more information about iMortgage’s loan products and the Ryan Grant Team, contact:
NMLS ID 470783
949 939 3095