Weekly Rate & Market Update 11-25-16
Question: The question of the week is taking the day to recover from tryptophan overdose yesterday.
Remember, with Dennis it’s not just a mortgage, it’s your complete financial picture.
Short week with limited economic data that was positive, supporting rates moving higher. Existing home sales in October were very strong with the most home sales since February 2007 after increasing 2% from August and up 5.9% from last October. The news is rate unfriendly as our economy has been pulled along with home sales this news gives a strong pull to economic growth. Other positive news came in the Durable Goods Orders grew 4.8% in October after declining in September. This news is also mortgage rate unfriendly as stronger orders for durable goods also signifies economic growth.
Rates for Friday November 25, 2016: With the certainty of a Federal Reserve rate increase in a few weeks, strong economic data and growing certainty as to the political future mortgage rates continued their climb this week. Early in the week it appeared the slide in Mortgage Backed Securities prices might have been at an end, but the pause was brief and the slide continues. Rates are up for their third straight week following the election and are now up 0.625% rising another 0.125% this week. Conforming rate hits 4% for the first time since last July.
FIXED RATE MORTGAGES AT COST OF 1.25 POINTS
30 year conforming 4.00% Up 0.25%
30 year high-balance conforming 4.125% Up 0.125%
30 year FHA 3.25% Flat
30 year FHA high-balance 3.75% Flat
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 (3.5% for FHA) with 740 FICO score for purchase mortgages.
I hope your Thanksgiving was enjoyable as ours.
Have a great week,
Dennis
