Instagram

TODAY’S MORTGAGE RATES

Mortgage Interest Rates went up
approximately .1% over the past 7
days with the Mortgage Backed
Security (MBS) market trading down
-44 bps on the week.

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

The big news last week was the
FED finally cutting the Federal
Funds rate by 25 bps. As we
discussed in the weeks leading
up to the FED meeting, the
market already believed that a FED
cut was imminent. When that
happens, the market prices in the
FED cut before it happens.

When the FED actually cut on
Wednesday, interest rates actually
went up. So why is that?

If you look at the FED members,
they are all over the board on
how many more cuts they believe
the FED should make. Here is
where the members stand right
now with FED rate cuts.

1 – raise rates
6 – no cuts
2 – 25 bps cut
9 – 50 bps cut
1 – 125 bps cut

This lack of a mandate for more
rate cuts is why I believe interest
rates went up. The market analyzes
what they believe will happen in
the future and rates follow.

Below is where the FED members
believe the Federal Funds Rate
should be through the end of 2025,
2026 and 2027. Currently the
Federal Funds Rate sits at 4.%
to 4.25% range.

The potential market-mover this week
is Friday’s PCE inflation report.

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.

MORTGAGE REFINANCE
DEMAND SPIKES 60%

Mortgage Refinance Demand spiked
after interest rates hit their lowest
levels since October of 2024 last
week.

The statistics show that larger loan
amounts were the most prominent
to start a refinance application as
a lower rate affects the payment
more. ARMs have also been
popular with 12.9% of refinance
applications.

An ARM is characterized by
a fixed rate for typically 5, 7, or
10 years. After the fixed period,
the interest rate adjusts typically
every 6 months based on a
Gross Margin and Index.

ARMs are popular because the
initial rate is lower. ARMS are
especially popular for homeowners
that feel that rates will drop more,
And for homeowners that don’t believe
they will be in their home/loan
past the fixed period.

HOME AFFORDABILITY IS
CHEAPER THIS FALL

Homebuyer affordability is increasing this
Fall with a combination of:

Lower Rates
Home Appreciation slowing
Wages Increasing

The Monthly Median Mortgage Payment
in America went down $290 in just
4 months.

Thanks and have a great week!!