Weekly Mortgage Rates

February 18, 2025

Last week proved rates have no momentum to move in either direction

We had some big misses in the data last week and despite daily fluctuations, rates have been stuck in the same range for weeks.

Inflation for January was higher 

CPI inflation reading for January came in much hotter than anticipated. We talked last week about how this could be a report that surprised higher since companies update their pricing for the new year. That is exactly what we saw, and rates rose Wednesday on the news.

Thursday after the CPI reading, PPI was also higher than expected (PPI shows wholesale inflation) but our friend Nick at the Wall Street Journal pointed out that the components that flow into the key inflation measure PCE (due out later this month) were better, leading the market opinion to be that PCE will show a better inflation reading than previously thought. This led to a recovery in most of those losses from Wednesday.

Just when I thought I was out, they pull me back in

Yes, just when we thought rates were moving higher on the inflation data, we had some more relief when retail sales came in on Friday and just tanked. January showed -0.9% for the month with lower revisions to December as well. A slowing economy helps rates improve. Credit card debt has been surging, so does this show that the consumer is finally tapping out or just trying to recover from the holiday spending spree?

Lesson last week - if you don’t like something just wait a day

There is a lot of news to digest daily but rates holding in the same window despite day-to-day volatility. Rapid changes in government policy have markets frozen like a deer in the headlights, waiting to see if we can make a run for it. Since markets are forward looking, it seems that more weight is being given to what impact all the policy changes will do to the economy moving forward, instead of on the current state of the economy.  As a result, we have tested the best and worst rates of recent weeks, and both pulled us right back into this same channel. Nothing has been able to break the trend, which is good news because it gives us a safety net of just how high, but also just how low rates can go, at least for today!

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Today’s Rates

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

RATES ARE CURRENT AS OF 2-18-2025. SUBJECT TO BORROWER APPROVAL, FICO SCORE, LTV AND PROPERTY TYPE

*APR IS BASED ON ESTIMATED FINANCE CHARGES OF $6935

**APR BASED ON ESTIMATED FINANCE CHARGES OF $16,430

***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, $1095 PROCESSING AND $0 UNDERWRITING FEE       

Also credit to MBS Highway and Rate Alert

Borda Mortgage | 5000 California Avenue #208 | Bakersfield, CA 93309 US

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