The Federal Reserve on Wednesday kept its easy money policy in place despite the accelerating economy. As expected, the U.S. central bank decided to keep short-term interest rates anchored near zero as it buys at least $120 billion in bonds each month. Fed Chairman Jerome Powell said the recovery is “uneven and far from complete”, so it still is not time to talk about reducing policy accommodation, including the asset purchases.
Lower-income homeowners could benefit from a new refinance program being launched by the U.S. government. Eligible borrowers will be able to refinance their mortgage at a reduced interest rate and lower monthly payment starting this summer.
Mortgage Bonds are modestly higher while the 10-year year holds steady at 1.63%. Next week, the Fed will purchase up to $31.46B, about $6.3B per day on average.
Let’s wait and see what happens for now. Consider locking in the rate if the interest rates goes down next week.
Economic Calendar
Report
Period
Estimate
Impact
Date: Mon. May. 03
ISM Index
Apr
64.9
High
Date: Wed. May. 05
ADP National Employment Report
Apr
750K
High
ISM Services Index
Apr
64.0
Moderate
Date: Thu. May. 06
Productivity
Q1
-2.8%
Moderate
Jobless Claims (Initial)
5/01
521K
Moderate
Date: Fri. May. 07
Hourly Earnings
Apr
0.1%
High
Average Work Week
Apr
34.9
High
Non-farm Payrolls
Apr
925K
High
Unemployment Rate
Apr
5.8%
High
Today’s Rates
Daily rate based on: SFR/Primary/LTV60/FICO 780/Purchase
IMPORTANT: Advertised rates were valid and effective as of the date reflected above, are for informational purposes only, and are subject to change without notice.
Loans are subject to credit and collateral approval. Advertised rates are based on a set of loan assumptions including a borrower with excellent credit history and optimal loan characteristics. Your final interest rate and annual percentage rate (APR) may differ depending on your individual transaction’s specific characteristics, and certain products may not be available for your situation. Several determining factors include, but are not limited to, the state of the property location, loan amount, documentation type, loan type, occupancy type, property type, loan to value, and credit score.
APR reflects the cost of credit over the term of the loan expressed as an annual rate. For mortgage loans, APR may include the interest rate, discount points (also referred to as “points”), and other charges or fees (such as mortgage insurance and origination fees), but does not necessarily take into account other loan-specific finance charges you may be required to pay.
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