US mortgage rates continued moving lower yesterday, even as the underlying financial markets offered little in the form of motivation.
There was no clear cause-and-effect between mortgage rate movements and what was happening in the international economic and political arena, and the economic reports and bond market movements that normally play a major role in mortgage rate movements failed to justify any significant shifts. Instead, bond markets seemed to be on auto-pilot, moving of their own accord.
Although the latest move was fairly small, it was the sixth time in the past seven days that a mortgage rate improvement was seen. The net effect was that these rates ended yesterday at their best levels in nearly three weeks.
This has resulted in quite a few of the more aggressive mortgage providers dropping their best available rate on a 30-year fixed-rate loan back down to 3.875%, although many are still clinging to 4.0%. In situations where applicants are quoted the same rate as last Friday, they will typically be quoted higher upfront lender credits or reduced upfront costs depending on the individual situation.
There is not a lot of scheduled economic data in the pipeline for the rest of the week, so the market should be fairly quiet over the next few days. Of course, unscheduled events could create big changes, particularly if they involve any important progress or announcements on the tax reform bill. House leaders are currently busy fine-tuning the tax bill to improve its chances of being accepted by members of the Senate.
Generally speaking, successful tax reform is regarded as being good for the economy, which will exert upward pressure on mortgage rates. Exactly how strong that pressure will be depends on the finer details.
With 30-year fixed-rate mortgages on average being available at between 3.875% and 4.0%, the rate on FHA/VA loans now stands at around 3.875%. Prospective home buyers can get a 15-year fixed-rate loan for between 3.25% and 3.375%, while 5-year ARMS on average are going for between 2.75% and 3.25%.
Use our mortgage calculator to determine how much you can afford to borrow, and do not forget that we offer a mortgage pre-approval facility.
Visit us online to receive a custom rate quote on one of our competitive home loans including Conforming Loans, Non-Conforming Loans, Government Loans, Portfolio Loans, Jumbo Loans or Super Jumbo Loans online or by calling us at 1.888.546.2634 to speak with a Mortgage Consultant today.