Mortgage Market Update
mortgage
Interest rates on fixed-rate mortgages are likely to remain fairly stable in the first three weeks of September. The forecast gets murkier at the end of the month. That’s because the Federal Reserve will update its interest rate policy Sept. 21. Rates often stabilize in the two or three weeks prior to Fed meetings. If that pattern holds in September, the rate on the 30-year mortgage will hang out in a range between about 5.75% and 6% until the Fed announcement.
The aftermath of the announcement could be another matter, with up-and-down swings in mortgage rates. But borrowers should brace themselves: Mortgage rates could ratchet upward, like someone climbing a ladder two rungs up and one rung down. Such a path would be consistent with this year’s upward trend for mortgage rates.
The rate on the 30-year fixed went up almost three-quarters of a percentage point from the end of July to the end of August. The increase eroded borrowers’ buying capacity.
As interest rates and home prices have risen this year, home sales have slowed. In turn, sellers are more accommodating. According to a Realtor.com survey of recent home sellers, almost all sellers nowadays are making upgrades and repairs before they list their homes. And 69% of sellers in August sold their homes at or above the asking price, compared to 82% in February through April.
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.
