VIDEO UPDATE:

Job Creation Beat Estimates, How did that Affect Mortgage Rates? Here is Your Weekly Mortgage Rate Update.

TODAY’S MORTGAGE RATES

Mortgage Interest Rates stayed relatively
the same on the week, but it was a
rocky ride.

Interest rates improved some Tuesday
and Wednesday, but saw those gains
erased after May’s BLS Jobs Report.
Monday saw us recover some of
the losses.

After the dust settled, rates start
this Tuesday about the same as
last Tuesday.

The average 30-year fixed conventional
interest rate in the U.S. is at 6.95%.
FHA and VA average 30-year fixed
rates are sitting mid 6%s.

The Mortgage Backed Security Market
down -1 bps on the week. The 10 Year
Treasury currently sits at 4.47%.

Below are your average interest rates
across the country according to
Mortgage News Daily.

The big news last week was Friday’s
May BLS Jobs Report. Job creation
came in at 139,000 jobs,14,000
above the estimate. The Unemployment
rate stayed the same at 4.2%.

There is some frustration from those
that follow the markets because the
BLS Jobs Report is almost always
inflated. Higher job numbers hurt
interest rates. Then the BLS revises
the numbers lower after the fact,
but the lower revisions don’t create
nearly as much market movement
as the initial announcement. BLS
lowered the job creation data by
95,000 in March and April and this
created no market movement.

There are a lot of characteristics
that go into a mortgage rate –
credit score, investor, loan to
value, loan amount, costs, etc.
Please call me to go over your specific
scenario so we can price your loan
out accurately.

Or you can get a Free Mortgage Quote
or Apply for a Mortgage with the links below.

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ARE 3% RATES EVER COMING BACK?

A lot of buyers are pressing pause
on their plans these days, holding
out hope that mortgage rates will
come down – maybe even back
to the historic-low 3% from a few
years ago. But here’s the thing:
those rates were never meant to
last. They were a short-term
response to a very specific moment
in time. And as the market finds
it’s footing again, it’s time to
reset expectations.

Back in 2020 and 2021, 3%
mortgage rates gave buyers a
serious boost: more affordability,
more buying power, and more
opportunity. But those rates were
a result of emergency economic
policies during the height of a
global pandemic. Now that the economy
is in a different place, we’re seeing
mortgage rates in the high 6% to
low 7% range. And while experts
currently project a slight easing in
the months ahead, most industry
leaders agree: rates are not going
back to 3%. Instead, many forecasts
suggest mortgage rates will settle in
the mid-6% range by the end of the year,
pending any major economic shifts.

As Kara Ng, Senior Economist
at Zillow, says:

“While Zillow expects mortgage rates to
end the year near mid-6%, barring any
unforeseen shocks, that path might
be bumpy.”

What Buyers Should Know:

Basically, waiting for 3% rates might
mean waiting longer than you’d
expect – and missing out along the
way. Instead of putting off homebuying
indefinitely, make a plan to get there
and focus on what you can control:
your budget, your credit, and working
with a trusted professional who can
explain exactly what’s happening in the
current market – and how to navigate it.

And here’s the biggest thing to keep in
mind. Since rates are projected to ease
slightly later this year, if that happens,
it could bring some more buyers back
into the market. Acting now gives you
a head start, especially with more homes
on the market than we’ve seen in years.
Think about it: if mortgage rates do come
down, what do you think everyone else
is going to do? That’s right – they’ll jump
back in too. Getting ahead of that rush
could put you in a stronger position to
find the right home with less competition.

Realtor.com sums it up well:

“Staying out of the market in hopes of a
rate drop that never comes can lead to
missed opportunities – Rising home prices,
rent increases, and inflation might
outpace any future savings on interest.
And if rates do fall sharply again, buyers
could face an entirely different challenge:
surging competition.”

Bottom Line

Those 3% rates everyone remembers
from a few years ago were the
exception, not the rule. Now that
they’re settling into new territory,
it’s a good time to adjust your
expectations and learn more about
where things are heading as this
market shifts. A local real estate agent
and a trusted lender will be your best
resources, always keeping you
up-to-date and informed, so you can
make sense of your options and build
a game plan that works for you.

Hope you have a fantastic week!