Mortgage rates again improved slightly last week, although volatility this week could lead to rates bouncing around a bit. According to the weekly survey put out by Freddie Mac, the average rate for a 30-year fixed rate mortgage fell by .04 percent.
Keep in mind that rates on average are still about .25 percent lower than they were at this same point last year so if you have not yet refinanced in the last year, let’s talk and see if refinancing could save you some money on interest. Simply reply to this email or call/text me at 818.307.6072 to chat.
What I’m watching this week…
This week, we’ve got lots going on that could contribute to some increased market volatility. There’s lots of housing data coming out as well as a Fed Meeting and the market’s reaction to Biden’s plan to increase the capital gains tax. I’ll be keeping an eye on the 10-year Treasury yield percentage. It’s bumping up next to 1.60 percent. If it goes much above that, we could see rates trend higher.
The Fed meeting got underway Tuesday with the Chairman’s press conference happening on Wednesday.
Tuesday we got a look at home price appreciation figures. February’s sharp rise in mortgage rates as well as lack of inventory slowed resales but isn’t pulling down expectations much for resale prices. Case-Shiller’s 20-city adjusted index, which has posted gains of at least 1 percent for six straight reports, rose an expected 1.1 percent again. The annual rate also rose further to 11.9 percent versus 11.1 percent in January.
The FHFA House Price Index, which tracks prices of homes with conforming loans showed a 0.9 percent monthly increase with an annual rise to 12.2 percent.
Pending home sales slowed very sharply in February, down 10.6 percent on the month as mortgage rates spiked. For March, a month when rates also rose but to a lesser degree, pending sales are expected to bounce back a consensus 3.8 percent.
The Fed’s favorite inflation measure is coming out on Friday and expected to show the core PCE price index rising 0.3 percent on the month for annual growth of 1.8 percent versus February’s 1.4 percent. The Fed’s aim with its policies is to keep inflation between 1-2 percent. Any surprises here could lead to an increase in mortgage rates.
I’ll be keeping an eye on all of it and be back here next week to report on it all. Until then!