VIDEO UPDATE:Interest Rates Go Up Before the FED Meeting. Here is Your Weekly Mortgage Rate Update.

TODAY’S MORTGAGE RATES

Mortgage Interest Rates have gone
up approximately .1% over the past
7 days with the Mortgage Backed
Security (MBS) Market trading
down – 55 bps.

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

Let’s break down the data from
last week.

The PCE inflation report came in
at 2.3%year over year slightly
higher than expectations.

Quarter 1 U.S. GDP came in
at -.3%. This is the first
negative number since 2022.

The BLS Jobs report showed 177,000
jobs created in April which beat
estimates of 130,000.
Unemployment stayed at 4.2%.

The GDP number would usually be
positive for interest rates, but the
PCE inflation numbers and BLS
jobs report coming in higher than
expected pushed interest
rates higher this week.

All eyes this week are on the FED
meeting and press conference on
Wednesday. I expect the FED to
keep the Federal Funds Rate
unchanged.

Here is the interest rate chart
so far in 2025. The blue line
is the most accurate.

Interest rates hit their lowest levels
in early April of about 6.6%.

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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STUDENT LOAN COLLECTIONS RESTART

The Department of Education is set
to restart student loan collections
on defaulted student loans this
week. Delinquent student loan payments
have been paused for 5 years.

For clients currently in default on
their student loans, they could see
a drop in their credit score if they do
not become current as collection
efforts resume.

More than 42 million Americans hold
student loan debt exceeding $1.6
Trillion. Over 5 million Americans are
currently in default on their student
loan debt.

How will Student Loan Collections
Affect the Housing Market?

When we are qualifying clients with
student loan debt, we still have to
calculate deferred payments in the
loan qualification in most cases. How
we qualify clients won’t change much.

Higher monthly expenses and possibly
lower credit scores for some clients
will likely lower demand for starter
homes and for first time home buyers.

Higher monthly expenses on student
loan debt could lower consumer spending
which will typically help interest rates.

While it won’t tank the housing market,
the resumption of student loan
payments is a headwind—likely to
cool some buying enthusiasm and
tighten lending outcomes for a key
buyer demographic.

Hope you have a fantastic week!