Weekly Mortgage Rate Update-05-21-24
April’s CPI report showed that the inflation rate eased. The report was mostly in line with expectations, but the headline number was slightly lower at 0.3% monthly increase when 0.4% increase expected making the year/year rate 3.6% down from 3.8% in March.
Retail sales followed this report and came in flat. A big miss since it was expected to increase 0.4%. This follows another weak consumer sentiment report. The consumer is being more cautious and pulling back.
The knee jerk reaction to the slightly “less bad” inflation reading and slowing retail sales caused mortgage rates to improve. After the dust settled though, we couldn’t hold those gains and are back in a familiar trendline with rates where we have been for the past couple weeks.
Atlanta Fed Bostic said yesterday “the US economy is slowing but at a “albeit at a glacial pace”. The slowing will gradually cool inflation. “We do a lot of talking to business leaders and what they’re all telling us is that things are slowing down,” “My outlook is that inflation will continue to fall for this year and into 2025.”
Despite the slightly lower inflation increase and signs of a softening economy, the rate trendline hasn’t been able to break thru and hold the gains yet. The 10 year note that we watch broke below its support Wednesday but then climbed back up. The lack of follow through tells me we are here for a little while longer.
Markets are closing early Friday for a long holiday weekend.
|
Loan Type |
Conventional 30 year |
Conventional 15 year |
FHA 30 year |
VA 30 Year |
|
Interest rate |
6.875% |
6.25% |
6.25% |
6.25% |
|
APR |
7.069%* |
6.384%* |
6.984%** |
6.311%*** |
LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)
RATES ARE CURRENT AS OF 05-21-2024. 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
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.