Currently the mortgage lending market is seeing a mixed bag of factors, which are pushing rates up and down, causing a neutral trend. Below are some of the current highlights causing this volatility, yet stability.
Pushing rates up:
- The January manufacturing index was released, with signs of improvement
- Inflation concerns from investors
Pushing rates down:
- Wage growth was lower than expected after January jobs report
- Wage inflation rates dropped to 2.5% in January, an opposite trend than thought in December when 2.9% was reported
- January Fed meeting had no “surprises.” No change in federal funds rate or futures.
Current Market Rates:
Conventional 30 yr: 4.275 to 4.375% (APR: 4.2 to 4.5%)
Conventional 15 yr: 3.25 to 3.5% (APR: 3.3 to 3.67%)
FHA: 3.75 to 3.875% (APR: 5.8 to 5.92%)
Jumbo: 4.375% (APR: 4.5%)