Weekly Mortgage Rate Update- 03-05-2024

Mortgage rates are starting this week off a little better. PCE came in at expectations with the annualized rate of Core PCE coming in at 2.8% which is down a notch from December.  However, month over month inflation was up .42% which is 4 times faster than last month’s pace.  Overall inflation is still trending down, but the monthly change is something to watch. The Fed wants to make sure inflation doesn’t reignite which is the reason they want to hold off for now on lowering the Fed rate.

Supporting the move to better pricing, we have had a few key data points come in showing a little slowdown in the economy.  Manufacturing is contracting across the board with ISM and Chicago PMI both coming in weak. Consumer confidence and consumer sentiment both dipped in February.  The personal spending component of PCE came in lower showing consumers didn’t spend as much in February.  This week is full of employment data for February, so will be looking to see if any of this slower economic news shows up in the employment data. 

Also, this week on Wednesday and Thursday Powell is before congress for the semi-annual meeting, always something to watch to see what he has to say.  So far, we are trading at better pricing than last week.  We will see if it holds and maybe even breakout of this trendline we are in now for better pricing after the headlines later this week hit. That sure would be a nice way to kick off the spring housing market. 

Loan Type	Conventional 30 year	Conventional 15 year	FHA 30 year	VA 30 Year
Interest rate	6.625%	6.00%	6.25%	6.25%
APR	6.784%*	6.231%*	6.984%**	6.311%***

LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)

RATES ARE CURRENT AS OF 03-05-2024.  SUBJECT TO BORROWER APPROVAL, FICO SCORE, LTV AND PROPERTY TYPE.conv

*APR IS BASED ON ESTIMATED FINANCE CHARGES OF $6935

**APR IS BASED ON ESTIMATED FINANCE CHARGS OF $10,969 THIS INCLUDES FHA MORTGAGE INSURA

NCE PREMIUM

***APR BASED ON ESTIMATED FINANCE CHARGES OF $8343

FEES INCLUDE 1% POINTS, NO Loan Origination Fee ,  $1095 PROCESSING AND $0 UNDERWRITING FEE        

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.