Weekly Mortgage Rate Update- 03-19-24

Last week rates rose, putting us back at the top end of our recent rate trends.  The silver lining is we have a lot of support at the current pricing, helping rates hold here and not move up more.

The increase started with CPI (Consumer Price Index) showing a higher than expected monthly increase on Tuesday. Later in the week PPI (Producer Price Index) showed inflation at double the expected pace of increase.   Producer prices shows what the costs going into production before it hits the consumer’s pocketbook, so it is forward looking at future inflation.  After months of moderating, inflation for the past couple months has been on the move back up.

That’s not the full story though, Retail sales were a little lower than expectations which indicates a softening economy. Something we are seeing a little more of recently and a help to rates, but still being overshadowed by inflation.

For the week ahead- Tomorrow, the Fed will announce its rate policy decision and reveal the dot plot chart for economic projections.  The last time we had the economic projections was the December meeting that showed most Fed members expected 3-4 rate cuts in 2024.  If tomorrow it shows more or less cuts, the market will react. Currently 55% of market is pricing in a first rate cut in June, we will see if that outlook changes tomorrow.

Loan Type	Conventional 30 year	Conventional 15 year	FHA 30 year	VA 30 Year
Interest rate	6.875%	6.00%	6.50%	6.25%
APR	7.037%*	6.231%*	7.507%**	6.399%***

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

RATES ARE CURRENT AS OF 03-19-2024.  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.