Mortgage Market Update
mortgage
US Mortgage Rates Spike Again as the Markets Respond to the Fed
In the week ending May 5, mortgage rates rose for the eighth time in nine weeks. 30-year fixed rates jumped by 17 basis points to 5.27%. 30-year fixed rates slipped by one basis point in the week prior. Year-on-year, 30-year fixed rates were up by 231 basis points. 30-year fixed rates were up by 33 basis points since November 2018’s last peak of 4.94%.
Economic Data from the Week Private sector PMIs and nonfarm payrolls were the key stats in the first half of the week. The numbers were dollar negative, with private sector PMI figures disappointing. In April, the ISM Manufacturing PMI fell from 57.1 to 55.4, with the Non-Manufacturing PMI down from 58.3 to 57.1.
Labor market numbers were also dollar negative ahead of Friday’s NFP numbers. The ADP reported a 247k increase in nonfarm payrolls for April, falling short of forecasts, and a 479k rise in March. While the stats were of interest, the Fed monetary policy decision and forward guidance were the key drivers in the week. On Wednesday, the Fed delivered a 50-basis point rate hike, in line with forecasts. Fed Chair Powell also looked to calm the markets by assuring that 75 basis point hikes would not be on the table.
Freddie Mac Rates – The weekly average rates for new mortgages, as of May 3, 2022, were quoted by Freddie Mac to be:
30-year fixed rates jumped by 17 basis points to 5.27% in the week. This time last year, rates stood at 2.96%. The average fee increased from 0.8 points to 0.9 points.
According to Freddie Mac, Mortgage rates hit their highest level since 2009 as the upward trend resumed in the first week of May. House price growth will continue, though the pace of growth is expected to moderate due to affordability and inflationary pressures.
Today’s Rate
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.
Golden Star, Inc. dba Transglobal Lending, 185 W. Chestnut Ave., Monrovia, CA 91016, NMLS # 1437002 (www.transgloballending.com). All rights reserved. Equal Opportunity Employer and Equal Housing Lender. All mortgage products are subject to credit property approval. Rates, Program terms and conditions are subject to change without notice. Additional conditions, qualifications, and restrictions may apply. This is not an offer for extension of credit or a commitment to lend.
