Rates fluctuate every day and are based on several factors. For an exact rate quote, submit your request HERE for a free evaluation.

PMMS 7/8/2021

The average 30-year fixed-rate mortgage fell eight basis points from the week prior to 2.9%. According to Sam Khater, Freddie Mac’s chief economist, last week’s dip followed the concurrent drop in U.S. Treasury yields earlier this week.

“While mortgage rates tend to follow Treasury yields closely, other factors can be impactful such as the labor markets, which are continuing to improve per last week’s jobs report,” said Khater. “We expect economic growth to gradually drive interest rates higher, but homebuyers and refinance borrowers still have an opportunity to take advantage of 30-year rates that are expected to continue to hover around three percent.”

Mortgage rates have been in a state of limbo for several months now. Economists and investors are closely watching for any indication that the Federal Reserve may change its position on the tapering of assets. Minutes released on Wednesday of the Fed’s June FOMC meeting revealed the conversation may be happening sooner rather than later.

Several Fed officials said they would like to reduce the pace of purchasing mortgage securities “more quickly or earlier” in light of skyrocketing home prices. But other Fed officials pushed back, saying that it was preferable to gradually slow down the purchases. Since March 2020, the Fed’s asset purchases are split between $80 billion of Treasurys and $40 billion of agency MBS each month, keeping interest rates low.

MBA 7/7/2021

Mortgage applications decreased again, this time falling 1.8% in the week ending July 2, 2021. This marks the third straight week of application declines, and represents the lowest level since the January 2020.

“Treasury yields have been volatile despite mostly positive economic news, including last week’s June jobs report, which showed ongoing improvements in the labor market,” said Joel Kan, MBA associate vice president of economic and industry forecasting. “However, rates continued to move lower, especially late in the week.”

Kan said 30-year mortgage rates were 11 basis points lower than the same week a year ago, and refinance applications have trended lower than 2020 levels for the past four months.

Contact us…We can help!

Other useful links

• How to improve your credit
• The 20% down rule on conventional
• What is Escrow?
• How is income calculated?
• Why your assets matter
• Mortgage Calculator
• Is Credit Karma accurate?
• FHA vs Conventional, which is better?

What To Do Next

• • Text us
  • Request A Free Consultation
  • Share On Facebook With Friends And Family
  • Book a Phone Call In My Calendar To Discuss Options