So what’s the latest on mortgage rates? Rates are based on mortgage-backed bonds. These bonds typically move in similar fashion to US Treasuries. When the economic outlook improves, stocks tend to improve while bonds suffer. “Suffering” in the bond market means lower bond prices and higher yields. “Yield” is just another word for “rates.” Long story short, stronger-than-expected economic data means upward pressure on rates, all other things being equal.
If the economic data continues to be much stronger than expected, there’s a very real chance that all-time low rates are behind us for now. But do keep in mind that such comments are only ever as good as the data we currently have available. Markets are reacting to extremely positive economic surprises this past week. Something else could be happening this coming week. Things can and do change ALL the time when it comes to financial markets.
Even if things don’t change, there are a few things to remember. First off, mortgage rates are still very close to all-time lows in the bigger picture. So there’s still time to take advantage of this historic opportunity if you haven’t already. Mortgage rates have largely lagged the extreme moves seen in the US Treasury market for reasons unique to the coronavirus response. This means they have a bit of a cushion to absorb some of the current upward pressure. While that won’t prevent them from moving higher, it can make the move less intense than it otherwise would be.
Current Mortgage Rates:
- Conventional 30 Year Fixed – 2.990%
- Conventional 15 Year Fixed – 2.625%
- FHA 30 Year Fixed – 2.750%
- VA 30 Year Fixed – 2.750%
- USDA 30 Year Fixed -2.750%
- Jumbo 30 Year Fixed – 4.000%
- Jumbo 15 Year Fixed – 2.625%
- Construction Jumbo 30 Year Fixed 1-Time Close – 4.625%
- Renovation Loan, Conforming 30 Year Fixed – 3.500%
*includes 1% discount point and based on a 30-day lock “purchase, loan”, 800 credit score, 80% loan to value, except for government loans.
If I were considering financing/refinancing a home, I would….
- Lock if my closing were taking place within 7 days…
- Lock if my closing were taking place between 8 and 20 days…
- Float if my closing were taking place between 21 and 60 days…
- Float if my closing were taking place over 60 days from now…
This is only my opinion of what I would do if I was financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of anyone.
Please let me know if I can help your clients with getting pre-qualified, quoting current mortgage rates and/or preparing an estimate for them. I am available any time to answer your questions. Buy ~ Build ~ Renovate ~ Refinance with me!
Senior Mortgage Consultant
678.468.4046 – 24 x 7 cell
678.782.8129 – Efax
NMLS ID: 545217
Choose Wisely. Choose Crescent. 6600 Peachtree Dunwoody Rd NE 600 Embassy Row Suite 650 Atlanta, GA 30328
A Subsidiary of United Bank, Nasdaq: UBSI
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