Mortgage rates continued moving lower at the beginning of the new week, which marks the second straight day that rates have improved. Interest rates had a signicant jump last Thursday, the biggest single-day uptick since 2013, then rates have started inching lower since Friday. Pricing on U.S. government bonds increased on Monday, as falling oil prices urged investors to flock into ultra-safe haven assets. The price gains in the last two days helped the bond market to stabilize following a selloff on Thursday. As far as current mortgage rates are concerned, the average lender is now offering the standard 30-year fixed mortgage rate at 4.000%, with some of the more aggressive lenders now approaching 3.875%.
In the secondary market, the 10-year treasury note finished Monday’s trading session at a yield of 2.23%, a 5 basis points drop compared to Friday’s data. As mortgage rates typically follow the lead of the 10-year treasury note, you may see some lower mortgage rates at your favorite lender today. With regards to the 30-year treasury note, the yield edged down by 6 basis points to 2.95% at the beginning of the week.
On Tuesday morning, pricing on mortgage-backed securities (MBS) is in the green, and in case the positive momentum lasts until the end of the day, we could see further improvements in today’s mortgage rates.
As we mentioned in our previous mortgage report yesterday, this week looks to be particularly light on influential economic data. Nonetheless, two pieces of domestic economic reports came out today. One of them is the NFIB’s small business optimism index for November, which got released earlier this morning. According to the latest data, the index came in at 94.8 in November, which marks a 1.3 points drop compared to October’s reading, signaling that small business owners were less upbeat about their economic prospects this month.
On the other hand, the Labor Department released the latest edition of its monthly Job Openings and Labor Turnover Survey (JOLTS) on Tuesday. October’s JOLTS reports showed, that job openings fell 2.7% in October to 5.38 million, missing the consensus expectation of 5.54 million job openings. Despite the slight slowdown in hiring, the employment market continues to improve. As the Fed is closely watching this report, the latest data could encourage the U.S. central bank to raise short-term rates at its upcoming meeting in December.
The Fed will meet next week for the last time this year to discuss monetary policy and the market is widely expecting a rate hike to take place at the upcoming FOMC meeting, which could be the first rate increase in almost a decade. Currently, the CME FedWatch tool shows that 83% of investors and traders believe a rate hike will take place at this month’s Fed meeting.
Switching to today’s mortgage rates at top U.S. lenders, the 30-year fixed home loan rate is currently starting at 4.125% at California-headquartered top lender, Wells Fargo (NYSE:WFC). The 15-year home purchase mortgage rate is coming out at 3.375% this Tuesday. Those looking for more flexible home mortgage options, may want to consider Wells Fargo’s 7/1 ARM, which is available today at a rate of 3.500%. The 5/1 ARM FHA mortgage is another possible alternative, and this type of mortgage loan is up for grabs at a rate of 4.125%.
Under the lender’s home refinance loan portfolio borrowers can find the standard 30-year refinance mortgage, which starts at a rate of 4.125% on Tuesday. The popular 15-year fixed counterpart is quoted at a rate of 3.500%, according to the latest mortgage information. Individuals, who are looking to refinance an exiting mortgage with the help of a flexible ARM, can find a couple of options at this bank. The 7/1 adjustable rate mortgage for home refinancing is offered today at a rate of 3.500%. In case of the 5/1 ARM FHA loan, borrowers can expect to pay 4.125% interest.
Over at Chase (NYSE:JPM), the benchmark 30-year home mortgage rate is set at 3.750%. Others, who are preferring to finance their home purchase over 15 years, will see Chase’s 15-year fixed mortgage coming out at 3.125%.
The lender also has a number of loans for refinancing purposes that carry attractive rates. Currently, the 30-year conventional refinance loan can be obtained at a rate of 4.000%. The shorter-term, 15-year fixed mortgage can be locked in and taken out for as low as 3.250%.
Another top mortgage loan provider, which offers a wide range of home purchase and refinance loans is Bank of America (NYSE:BAC). The lender’s 30-year fixed home mortgage rate is currently starting at 4.000%, according to the latest data. BofA’s 15-year FRM is quoted at a rate of 3.125% on Tuesday.
Looking at the bank’s refinance mortgage loans, the long-term 30-year fixed mortgage is coming out at a rate of 4.125%. Those preferring shorter-term, 15-year fixed loan options, may want to take a look at BofA’s 15-year fixed refinance mortgage, as it’s carrying an attractive rate in the form of 3.125% as of today.
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