Last Week's Mortgage Rate Recap: Rates Basically Unchanged
Mortgage rates were basically unchanged last week, with no Fed speakers ahead of this week's Fed meeting and little in the way of economic data to influence rates.
This Week's Mortgage Rate Forecast: Rates could be Volatile
This week we have two major events that will affect mortgage rates... the CPI inflation report and the Fed meeting. It is difficult to forecast how rates will play out this week, but we are hoping to see them drop at least slightly by the end of the week if these two events play out in our favor.
What's Affecting Rates this Week?
- Economic data: The CPI inflation report comes out on Tuesday morning, and if inflation shows more signs of cooling could help mortgage rates improve. If the data shows lower inflation than expected, that is good for rates, but a reading that shows inflation remains stubbornly persistent will pressure rates higher.
- The Fed meeting: Markets expect the Fed to pause hiking rates at this meeting and will be listening for signals of what the Fed will do through the rest of the year. The policy and rate statement come out at 2pm Eastern, with Fed Chair Powell's press conference at 2:30pm Eastern. Expect lots of volatility for rates on Wednesday.
Where are rates lately?
| Product | Rate | APR |
|---|---|---|
| Conventional 3% Down* | 6.125% | 6.34% |
| FHA 3.5% Down** | 5.75% | 6.5% |
| VA 0% Down** | 5.75% | 6.01% |
*Based on a $726k loan amount with 1 discount point, 3% down, borrower with a 740 FICO.
**Based on a $726k loan amount with 1 discount point, 3.5% down, borrower with a 740 FICO.
***Based on a $726 loan amount with 1 discount point, 0% down, VA funding fee financed, borrower with a 740 FICO.
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