Weekly Mortgage Rate Update-1-23-24
Have you heard of the “vibecession”? Consumer sentiment surveys have shown that the public has not optimistic on their financial prospects for a while now, this despite most of the data coming in that shows the economy is still growing. According to TikTok (yes TikTok) this negative vibe leads to the self-fulfilling prophecy of a recession. Now we know- we just need to work on our vibes man.
All the news last week pointed to strength in the economy. Retail sales came in much higher than expectations, weekly jobless claims dropped, and the vibes out there must be improving because consumer sentiment rose last week too on lower inflation expectations.
Not to harsh your vibe but, mortgage rates have inched up a bit over the past couple of weeks as the market rethinks just when and how much the Fed will cut rates. Last week Fed speakers and comments out of Davos were all telling markets, not so fast- we don’t need to lower rates just yet because the economy is still fine. They will have to cut some eventually, but the timing is harder to predict.
This week we have the first look at 4th quarter GDP on Thursday, then Friday when we get the biggie- Core PCE which is the Fed’s main gauge on inflation. Followed by next week the first Fed meeting for the year and their interest rate decision and outlook.
|
Loan Type |
Conventional 30 year |
Conventional 15 year |
FHA 30 year |
VA 30 Year |
|
Interest rate |
6.625% |
5.875% |
5.999% |
6.125% |
|
APR |
6.784%* |
6.131%* |
7.011%** |
6.273%*** |
LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)
RATES ARE CURRENT AS OF 01-23-2024. 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.