July 31, 2018
Mortgage rates fell modestly today, bringing them back in line with last Friday’s levels. Most of the inspiration for the improvement came from overnight developments in Japan, where the country’s central bank doubled down on its commitment to keep easy money policies flowing for an extended period of time. In general, when large central banks commit to maintaining such policies, it’s good for interest rates. Last night was no exception, but much of the benefit went to Japan’s bond market (unsurprisingly) with US markets just getting a small token of the gains.
It should be noted that by the time such news filters through to the world of mortgage rates, the improvements are barely detectable for the average borrower. Many mortgage seekers will be seeing the exact same quote compared to yesterday. Those who see better quotes will almost certainly still be seeing the same interest rate, but with marginally lower upfront costs (something around $100 for every $100k financed).
From here on out the rest of the week is busier in terms of scheduled events that could impact rates. The potential for volatility is higher, culminating with Friday’s big jobs report. Bottom line: rates are already near the highest levels in more than 2 months, but if the incoming economic data isn’t ‘rate-friendly,’ they could keep moving higher.
|30 Yr FRM||4.72%||-0.01|
|15 Yr FRM||4.19%||-0.01|
|FHA 30 Year Fixed||4.42%||+0.00|
|Jumbo 30 Year Fixed||4.50%||-0.01|