Vacation market update

Question of the week:  No question or answer again this week as we are on vacation, but a brief update below.

Rates are up this week, after a roller-coaster week for Mortgage Backed Security prices (which determine mortgage rates), we end the week higher than last Friday.

Federal Reserve Chair Jerome Powell in comments yesterday said the Fed was “likely” to raise its benchmark interest rate by 0.500% (one-half of one-percent) in May, and that it is likely similarly large rate boosts could occur in the near future. This confirmation that the Fed was going to raise rates with large moves, the typical move is 0.25% (one-quarter of one-percent).

Investors reacted accordingly, and as a result rates on mortgages and bonds pushed up.

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Rates for Friday April 22, 2022: Rates are up 0.125% this week, but some feel rates are beginning to stabilize, which is good news.

FIXED RATE MORTGAGES AT COST OF 1.25 POINTS LOCKED FOR 45 DAYS FOR PURCHASE TRANSACTIONS:

30-year conforming                                         5.00%  Up 0.125%

30-year high-balance conforming                   5.625%    Up 0.125%

Please note that these are base rates and adjustments may be added for condominiums, refinances, credit scores, loan to value, no impound account and period rate is locked. Rates are based on 20% down with 740 FICO score for purchase mortgages.

Leslie and I are taking a mini-trip to the desert and hanging out with long time friends. Yesterday at Ralph’s was interesting as it was packed with a younger crowd than the  eighborhood demographic, with plenty of cases of hard seltzers, beer and other beverages as they stocked up for the Coachella weekend. No, we are not attending any of the concerts, past my bedtime…Rock on!

Dennis

Past Weekly Rate & Market Updates can be found on my blog page at my website www.DennisCSmith.com/my-blog