Mortgage rates bounced back on Monday, as investors flocked into safe haven instruments, pushing government bond prices up and mortgage interest rates lower. There were no major economic news scheduled for release on Monday, that could have had a major impact on the bond market, which ultimately dictates the movement of mortgage rates. According to our observations, the most prevalently quoted interest rate for the 30-year fixed mortgage is still 4.125% at the top lenders, however some of them are still offering the aforementioned loan package with an interest cost as high as 4.325%.
In the secondary market the 10-year treasury note, which is a bedrock of global finance, finished Monday’s trading day at a yield of 2.38%, a decrease of 4 basis points compared to Friday’s data. Strong demand from investors sent the yield on the 10-year note close to a 1-month low. As home loan rates tend to follow in the footsteps of the 10-year treasuray yield, there’s a chance borrowers will see slightly lower mortgage rates at certain lenders compared to rates from late last week. With regards to the 30-year treasury yield, it closed yesterday’s trading session at 2.97% down from 3.00% on Friday.
Pricing on mortgage-backed securities (MBS) are slightly in the green this morning, and in case the positive momentum lasts until the end of the day, we could see some improvements in today’s mortgage rates.
Back on Monday some Fed officials made public appearances and shared their views on future monetary policy. “The economy today is well positioned for moderate growth and steadily improving conditions,”Atlanta Fed President Dennis Lockhart said in an economic policy speech at the Rotary Club of Atlanta. Lockhart also added, that he feels the U.S. central bank may only need to hike rates twice this year.
Another top Fed official, Eric Rosengren called for “somewhat more regular interest rate hikes” in a speech to business leaders in Hartford, Conn. on Monday. According to the Boston Fed President, who isn’t a voting member of the Fed’s policy-setting committee in 2017, the U.S. central bank could reach its employment and inflation goals by the end of the year, therefore the pace of short-term rate increases should be speeded up.
Now, looking at the latest domestic economic headlines, one piece of influential data got released this morning, in the form of the November Job Openings and Labor Turnover (JOLTS) survey. The Labor Department reported that employers posted 5.522 million jobs in November, an uptick from 5.451 million jobs in October. The consensus expectation was for a reading of 5.5 million job openings for November. When breaking down the latests JOLTS report, the data indicates that the resignation rate was essentially unchanged for the sixth consecutive month at 2.1%, which is close to the highest level since the recession. A high resignation rate signals, that people have more options in the job market and are confident in finding new jobs after they quit. As the Fed considers quits rate an important labor-market indicator, it could have an impact on future monetary policy.
On Wednesday a 10-year treasury note auction will take place, which could be an important event as far as mortgage rates are concerned. A strong demand from investors could see the yield on the 10-year note dropping, while a weak demand would send the yield higher. As mortgage rates typically follow the movement of the 10-year treasury yield, the outcome of the auction could define what direction interest rates will move in.
Today’s mortgage rates at some of the top U.S. lenders are looking similar to those from yesterday. For instance, the standard 30-year fixed conventional home loan at Bank of America (NYSE:BAC) is currently offered at a rate of 4.250%. The 15-year fixed counterpart can be secured for as low as 3.500%, the latest mortgage data shows. The bank’s home refinance loan portfolio includes a wide range of options, such as the 30-year fixed mortgage. As of Tuesday, this type of mortgage loan carries an interest rate of 4.375%. Borrowers, who believe the 15-year fixed loan for home refinancing fits the bill better can expect to pay 3.500% interest cost.
Citibank (NYSE:C) is another major mortgage lender, that offers a number of home loan and refinancing options for borrowers. Currently, the 30-year fixed home loan starts at a rate of 4.125% at this lender. The long-term 30-year home refi loan can be locked in at a rate of 4.25%.
Heading over to US Bank (NYSE:USB), the lender’s 30-year fixed conventional loan is available this Tuesday at a rate of 4.250%. Mortgage shoppers who are interested in a shorter-term home loan, may want to take a look at the 15-year FRM, as it’s quoted at a rate of 3.625. The lender’s mortgage loan portfolio also has FHA and VA mortgages as well. According to today’s rate information, both the 30-year fixed FHA mortgage and the 30-year fixed VA loan carry a rate of 4.125% at this bank.
The above mentioned interest rates are subject to change and are not guaranteed. In order to search for live mortgage rate quotes from some of the top U.S. lenders, please click on the link below.