Weekly Mortgage Rate Update- 06-11-24

272,000 jobs were added to the economy for May according to the nonfarm payrolls report. That’s almost 100k more jobs than anticipated.   Important for the inflation outlook, the average hourly wages also rose higher than expected.  However, the unemployment rate creeped up from 3.9% to 4.0%.

You might be wondering how unemployment increased at the same time as we have strong job growth- “The data on job growth is generated from employers (establishment survey) The number (on unemployment rate) is drawn from a survey of households, which showed essentially no employment growth for the past year and rising part-time employment that had displaced full-time positions”- New York Times. https://www.nytimes.com/2024/06/07/business/economy/jobs-report-may-2024.html

Mixed signals are causing the recent volatility in our daily rates. Previous to the release of the employment report, mortgage rates had been improving on weaker economic news. 

Speaking of volatility- buckle up. Tomorrow could be a market moving day.  It starts with the release of CPI inflation data in the morning.  Expectations are that it slowed from April’s pace.

Then, the Fed meeting will conclude. They aren’t expected to change the Fed Funds rate, but we will get the quarterly economic projections that will show us a picture of what the Fed is forecasting. We haven’t seen this since the March meeting, so will be interesting to see how the different Fed members outlook has shifted.  

Loan Type	Conventional 30 year	Conventional 15 year	FHA 30 year	VA 30 Year
Interest rate	6.875%	6.25%	6.25%	6.25%
APR	7.03%*	6.508%*	6.95%**	6.39%***

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

RATES ARE CURRENT AS OF 06-11-2024.  SUBJECT TO BORROWER APPROVAL, FICO SCORE, LTV AND PROPERTY TYPE

*APR IS BASED ON ESTIMATED FINANCE CHARGES OF $6935

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