Weekly Mortgage Rate Update-12-03-2024
Weekly Mortgage Rates
December 3, 2024
Rates improved overall last week leading some to call the top on this most recent run up in rates. But before we get too excited, the jobs data takes center stage this week. It could pivot rates in either direction.
The bond market is still evaluating the impact of the new administration
The bond market is always forward looking, weighing long-term risks. Rates have been elevated on Trump’s re-election because they are considering his impact on future inflation, growth, and the federal deficit. Last week mortgage rates improved after Trump appointed Scott Bessent to be Treasury Secretary. Bond traders sighed relief on the pick, and this helped rates improve. The consensus is that Bessent understands markets and will advocate for reducing the deficit. As the administration plans become clearer, it will continue to impact the direction for rates, so keeping an eye on this.
Speaking of government spending- Let’s talk about D.O.G.E.
Trump’s last term increased the deficit by almost 8 trillion dollars. Bond traders fear his policies could continue to increase the deficit this term, but the new Department Of Government Efficiency ( DOGE) is promising to cut government waste. The bond market hasn’t priced in D.O.G.E. yet, it probably won’t be a factor in pricing until after some results are seen. Will be interesting to watch and see if there is any offset in the deficit from this new plan.
It’s all about jobs this week
The week is full of the latest employment news, but Friday is the focus. The BLS monthly employment data has been the reason in recent months for the big moves both higher and lower in rates. The revisions to the to the prior month’s reports will also be important. As we have talked about all year, this data is driving rates but it is consistently proven to be inaccurate. So, revisions are closely watched by the bond market.
Technically speaking
The10-year bond has improved from its recent highs, now hovering at 4.20% after peaking right at 4.50%. This is a good sign that its holding here. Seems poised to go one way or the other after we get the jobs data. There is a risk to floating the rate into Friday given the volatility we have seen over the past few jobs reports. But there are reasons to be hopeful here and December is historically a great month for mortgage rates.
This Week’s Rates
|
Loan Type |
Conventional 30 year |
JUMBO 30 Year |
FHA 30 year |
VA 30 Year |
|
Interest rate |
6.625% |
6.875% |
5.75% |
5.99% |
|
APR |
6.770%* |
6.99%** |
6.765%*** |
6.137%**** |
LICENSED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE LICENSE A division of TYKY (DRE #01919683) (NMLS LICENSE #257773)
RATES ARE CURRENT AS OF 12-03-2024. SUBJECT TO BORROWER APPROVAL, FICO SCORE, LTV AND PROPERTY TYPE
*APR IS BASED ON ESTIMATED FINANCE CHARGES OF $6935
**APR BASED ON ESTIMATED FINANCE CHARGES OF $16,430
***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
* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.