Weekly Mortgage Rate Update-03-12-2024
The CPI report released this morning came in a little higher than expectations with Core CPI at 3.8%, increasing by 0.4% for the month of February. This is the same report last month that triggered markets and caused mortgage rates to rise when it surprised to the upside. But so far, very little reaction. We are currently holding onto a key resistance level in pricing, which is promising for the outlook and for rates to hold in this range.
Helping to soften the blow from the recent uptick in inflation is a slew of weaker economic data. Rates improved last week after ISM services ( 2/3 of our economy falls under this sector) came in lighter with more signs of anticipated hiring slowing. Also, the consumer is in a bit if trouble with revolving credit debt coming in twice as high as expected. It’s being reported now that interest on credit cards and other loans now exceeds mortgage interest debt. Not surprising when 90% of homeowners are locked into rates under 4% though and credit card rates have skyrocketed. Also released this morning, the Small Business Optimism reading that came in weaker. This perhaps is why we didn’t see rates move much higher following the CPI data.
Last week had all the employment data for February to digest as well. Non-farm payrolls once again higher than expectations, but after significant revisions to January and December the reaction was muted, and rates didn’t increase. There are some signs of employment softening as average hourly wages came in light at 0.1% increase month over month, wage inflation is slowing. Unemployment rate ticked up to 3.9% higher than expected as people are not finding a new job as fast.
So, the tug of war continues between inflation and the economy, one (or both) must break to get to materially better rates.
|
Loan Type |
Conventional 30 year |
Conventional 15 year |
FHA 30 year |
VA 30 Year |
|
Interest rate |
6.625% |
6.00% |
6.125% |
6.125% |
|
APR |
6.784%* |
6.231%* |
6.874%** |
6.245%*** |
LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)
RATES ARE CURRENT AS OF 03-12-2024. 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.