Mortgage Rates:

Mortgage rates have had an impressive run–the best since 2011, in fact, when it comes to total peak to trough movement. That winning streak might not even be over, but every time rates bounce recently–even if only slightly–it’s cause for concern. For one of a few potential reasons, these big moves in rates only last so long. This one is big enough and long enough that it makes sense to keep an eye out for the big shift.

In fact, it makes sense to keep an eye out for temporary shifts! That’s the area of greatest concern currently. Following this week’s Fed meeting, rates extended their fall to the lowest levels since November 2016. But since then, the underlying bond market has bounced in such a way that suggests rates aren’t interested in further gains just yet.

It’s too soon to know if Friday was just a pause in the action for rates (they were only slightly higher yesterday and still very low in the bigger picture) or if it was an ominous sign preceding a bigger jump. Either way, the risk of volatility is increasing rapidly due to several events on the horizon in the next 2 weeks (G20 summit next week and important economic data in the first week of July).

Loan Originator Perspective

Bonds retreated yesterday, following up on Thursday’s PM losses. Looks like (for the moment) military strikes against Iran are on hold, and there’s rumors of Chinese tariff progress. We’ve likely seen our short term lows, but are still dang close to them.

Today’s Most Prevalent Rates:

· Conventional 30 year fixed rates currently priced at 3.875%.

· Conventional 15 year fixed rates currently priced at 3.375%.

· FHA & VA 30 year fixed rates currently priced at 3.50%.

· Jumbo 30 year fixed rates currently priced at 4.00%.

· MFA First Home Conv rates currently priced at 4.375%.

· MFA Next Home Conv rates currently priced at 5.50%.

As always, please let me know if I can help pre-qualify any of your buyers or answer any mortgage related questions you may have.

Have a great weekend!