Today's mortgage rates are higher.
The January Core PCE price index increased 0.1% from December, matching the consensus, and it was just 1.3% higher than one year ago. This is the Fed's preferred inflation indicator, and the Fed would like to see the core inflation rate increase to its target level of 2.0%. January Personal Income rose 0.3%, which was close to expectations. ISM Manufacturing declined to 52.9, slightly below the consensus of 53.0, and the lowest level since January 2014. Construction Spending fell 1.1%, well below the consensus for a small increase.
Despite how mortgage rates are doing today so far, note that rates can change at anytime, and often without advance notice. In a calm mortgage market, rates may change once or twice daily. In a volatile mortgage market, rates can change five times daily or more.
When mortgage rates change, mortgage lenders honor rates which have been previously "locked". Unlocked rates are rarely honored. To protect your long-term mortgage rate, lock a lender's price before rates start to move again.
Today's mortgage rate analysis is based on live mortgage-backed securities (MBS) pricing provided by MBSQuoteline, a real-time mortgage market data service available to loan officers, real estate agents, and other finance professionals.
The MBS data supplied by MBSQuoteline is the same market data used to formulate current mortgage rates by the nation's mortgage lenders.
The chart at top depicts today's Fannie Mae mortgage bond pricing. Fannie Mae bonds are linked to conventional mortgage rates which include mortgage rates for programs such as the Home Affordable Refinance Program (HARP 2.0), the HomePath mortgage program, and others.
MBS prices are inversely related to today's mortgage rates.
The chart does not depict the path of today's Ginnie Mae mortgage bonds, although Ginnie Mae bonds and Fannie Mae bonds tend to move in similar directions.
Ginnie Mae mortgage bonds are linked to today's mortgage rates for FHA loans insured by the Federal Housing Administration; VA loans guaranteed by the Department of Veterans Affairs; and USDA loans guaranteed by the U.S. Department of Agriculture.
When mortgage bond prices rise, U.S. mortgage rates tend to fall. Conversely, when mortgage bond prices fall, U.S. mortgage rates tend to rise. In general, a twenty-five basis point change in MBS pricing -- up or down -- leads to a 0.125 percentage point change in mortgage rates.
Mortgage rates change all day, every day. The mortgage rates you get from your bank "now" won't be the same rates you get from your bank in an hour. Be smart when you shop. Compare multiple lenders and get your best deal.
Get a complimentary mortgage rate quote now. Rate quotes are available at no cost, with no obligation to proceed, and with no social security number required to get started.
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
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2015 Conforming & FHA Loan Limits
Mortgage loan limits for every U.S. county,
as published by Fannie Mae & Freddie Mac, and the FHA.