Weekly Mortgage Rate Update 02-27-2024
The immediate rate outlook has shifted with rates moving up after CPI showed higher than expected inflation two weeks ago.
Last week didn’t have a lot of market moving news, but we did have several Fed members speaking in public with the same message, that they aren’t ready to cut and want to see more data. They aren’t in a rush since the economy is moving along fine, jobless claims are still at record lows, and inflation still has a way to go. The calls for lower rates for the 1st half of 2024 have been all but reversed.
This week will have more action with the main event Thursday when PCE is released. This is the Fed’s key measure for inflation. After the higher CPI report two weeks ago caused rates to rise, this is going to be key to the outlook on rates.
Today consumer confidence slipped a little, a reversal from the last few readings. This is positive for rates since it signals a slowing economy. We didn’t see a material improvement in rates after the release though since we have PCE hanging over our heads.
Another wild card- there is a lot of debt hitting the markets this week through treasury bond auctions- last week’s 20 year bond auction and Monday’s 2 and 5 year note auctions had weak demand. Today, waiting to see the outcome on another auction of 7 year notes . Softening demand for a growing supply of debt doesn’t help make a case for rates to decline. There is a lot of cash out there but the investors what to be paid to take on the debt, and we no longer have the Fed buying our debt, but actively reducing their holdings adding even more supply to the market. Something to keep an eye on.
|
Loan Type |
Conventional 30 year |
Conventional 15 year |
FHA 30 year |
VA 30 Year |
|
Interest rate |
6.999% |
6.25% |
6.25% |
6.25% |
|
APR |
7.136%* |
6.461%* |
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 02-27-2024. 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.