Weekly Mortgage Rate Update- 08-13-2024
Rates inched up a little from the lowest rates seen last Monday after recession fears and global concerns relaxed some, but this week there is an opportunity for a rate improvement tomorrow as we turn our attention back to inflation.
In economic news last week not much to report but a stronger ISM services reading showed some recovery in July from the June reading in the services sector. Also, weekly jobless claims dropped relieving some of the fear on the employment sector that had helped pricing get to the lowest rates in a year. We get this data weekly so it isn’t normally a market mover, but it’s the freshest data we have on jobs.
Key treasury auctions last week with the 10 year and 30 year bond were weak and pushed rates up some in the aftermath. This is important because how low long term rates can go is impacted by this, it’s a supply and demand story. The 2024 fiscal year is set to end with a deficit of 1.9 trillion and we fund that with the sale of bonds.
The Key event this week is the CPI inflation reading on Wednesday. But first today we saw the PPI reading which came in much weaker than forecasts and helped this morning’s rates a bit. PPI shows the inflation in goods and services before it hits the consumer. Its not always a precursor to what CPI shows but markets are reading it as another positive signal on inflation heading in the right direction.
The 10 year treasury bond moved back up last week but still holding below 4.00% over multiple sessions, which is promising and after this morning’s PPI report its headed back down to those levels that gave us the best pricing last Monday.
Things rarely move in a straight line but if we can hold these recent improvements after CPI on Wednesday, perhaps we can build on our recent gains with lower rates in the days ahead.
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Loan Type |
Conventional 30 year |
Conventional 15 year |
FHA 30 year |
VA 30 Year |
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Interest rate |
6.125% |
5.75% |
5.75% |
5.75% |
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APR |
6.279%* |
6.005%* |
6.459%** |
5.895%*** |
LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)
RATES ARE CURRENT AS OF 08-13-2024. SUBJECT TO BORROWER APPROVAL, FICO SCORE, LTV AND PROPERTY TYPE
*APR IS BASED ON ESTIMATED FINANCE CHARGES OF $6935
**APR IS BASED ON ESTIMATED FINANCE CHARGS OF $10,969 THIS INCLUDES FHA MORTGAGE INSURA
NCE PREMIUM
***APR BASED ON ESTIMATED FINANCE CHARGES OF $8343
FEES INCLUDE 1% POINTS, NO Loan Origination Fee , $1095 PROCESSING AND $0 UNDERWRITING FEE
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Tisha Borda |
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Mortgage Broker Local Lenders Group NMLS #257773 CalDRE #01291485 |
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Direct: (661)330-1424 | Fax: (661)591-4130 |
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Apply Online: teamborda.com |
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5000 California Ave Suite 208 Bakersfield CA 93309 |
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.