Author bio section

I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

This week’s news focused on the Federal Reserve Bank’s Open Market Committee meeting on March 21st, with minimal speculation about the outcome of the meeting — an increase in the Federal Funds overnight rate.  There was a surprisingly mild reaction in the bond and stock market after the Fed hiked the rate from 1.5 to 1.75%, and increased their economic projections. But — when the Fed meets, the real impact on the market is in the minutes of the meeting and commentary by individual Fed officials.

Mortgage Backed Securities (MBS) moved to their best levels yesterday after the new Fed Chair, Jerome Powell, commented on business leaders concerns regarding tariffs and a trade war impacting our economy. (Bad news for the economy is usually good news for bonds – and mortgage rates.)

The Fed revised the pace of future rate increases in 2019-2020, with members split between those that see the rate increasing from 1.75% to 5% and those wanting to maintain current levels. You can read the full report of their economic projections here and the press release from the meeting results here.

The big takeaway: a strong consensus that mortgage rates will increase over the next few years.

Lock in a Low Mortgage Rate before they go up even further

Another Stable Week for Mortgage Rates

This week’s candlestick chart, below, shows more sideways movement in Mortgage Backed Securities (MBS) over the past week, with a slight dip after comments by Fed Chairman Powell.  MBS directly impact mortgage rates, and the days with red indicate higher and green lower rates.

Screen Shot 2018-03-22 at 9.10.44 AM

The Mortgage Banking Associations’ (MBA) weekly rate survey shows “the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.68 percent from 4.69 percent.”

“The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) remained unchanged at 4.55 percent, with points increasing to 0.37 from 0.33 (including the origination fee).”

“The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since April 2011, 4.12 percent, from 4.07 percent, with points increasing to 0.51 from 0.46 (including the origination fee).”

“The average contract interest rate for 5/1 ARMs decreased to 3.83 percent from 3.93 percent, with points increasing to 0.68 from 0.45 (including the origination fee).”  All rates are for 80 percent LTV loans.

Get a Customized Mortgage Rate

Next Week’s Mortgage Rate Prediction

Weekly mortgage rates and trends from Bankrate is a compilation of mortgage and economic experts from across the country.  Predictions for the coming week: 46 percent of the panelists believe mortgage rates will rise over the next week or so; 31 percent think they will fall, and 23 percent believe rates will remain relatively unchanged (plus or minus two basis points).

Copy of sunday

Lock or Float Interest Rates?

Recommend locking a rate if you are in contract to purchase a home with a closing date in the next 45 days. There may be volatility in the markets over the next several weeks, due to continuing fears of trade wars, as the US announces official tariffs on China at the week’s end.  There is a lot of fear in the markets around the negative impact on global economies.

You May Also Like To Read:

How to Shop Mortgage Rates Like a Pro

Related Posts

  • 94
    Yesterday the Fed released the Beige Book which contained an even stronger emphasis on the impact of tariffs and labor shortages than the previous two publications. Along with that, all twelve districts in the U.S. said the economy is expanding moderately or at a moderate pace in their region. The…
    Tags: rates, mortgage, interest, rate, will, percent, week
  • 94
    The markets will close ahead of the long weekend at 2 pm EST on March 29th, and traders began 'parking" money in the bond market late Wednesday, the 28th. That means the market will react to the economic data released this week until Monday, April 2nd. We'll see traders moving…
    Tags: rates, mortgage, rate, week, percent, interest, will, points, average, contract
  • 93
    The last three weeks delivered increasing mortgage rates and the coming week is shaping up to be a repeat. What's behind this negative break from the summer doldrums rates have languished in is a steady sign that inflation is substantially above the Feds target of 2%. The latest CPI 4-week…
    Tags: rates, mortgage, week, rate, interest, percent, increasing
  • 93
    Mortgage rates have virtually treaded water for the summer, and it looks like that pattern will continue at least for another week.  At this point, nearing the end of the week of July 23rd, the economic data released was Durable Goods and the Weekly Jobless claims, and both came in…
    Tags: rates, mortgage, rate, week, will, interest, percent
  • 93
    Mortgage rates finished up another week at almost the same point that they began.  It's been a stagnant two+ months for rates, and it doesn't appear to be breaking out of that pattern soon. All the recent economic data continues to point to building inflation, primarily due to a severely…
    Tags: rates, mortgage, week, rate, interest, percent