Click To See Today's Rates

Posted 09/08/2017

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Mortgage rates today, September 8, plus lock recommendations

mortgage rates today 9/8/2017

What's driving mortgage interest rates?

Mortgage rates today remained nearly unchanged this morning. With no scheduled economic reporting, today's rates will take their cues from stock market happenings and political events.

Normally, Friday is not the best day of the week to lock; however, mortgage pricing is so good right now, consider locking if you get terms you like.

Click to see today's rates (Sep 23rd, 2017)

Mortgage rates today

(As of 10:30 am EDT)

Program Rate APR* Change
Conventional 30 yr Fixed 3.625 3.625 Unchanged
Conventional 15 yr Fixed 2.875 2.875 Unchanged
Conventional 5 yr ARM 3.125 3.666 Unchanged
30 year fixed FHA 3.250 4.180 Unchanged
15 year fixed FHA 2.750 3.628 Unchanged
5 year ARM FHA 3.000 4.101 Unchanged
30 year fixed VA 3.250 3.413 -0.01%
15 year fixed VA 2.875 3.166 -0.01%
5 year ARM VA 3.250 3.384 -0.01%

Your rate might be different. Click here for a personalized rate quote. See our rate assumptions here.

Today's data

Today's data are mixed and contradictory. Indicators pretty much cancel each other out. Do not expect huge changes today.

  • Major stock indexes are mixed (neutral)
  • Gold prices rose another $4 an ounce to $1,351 (good for mortgage rates because gold rises when investors are nervous, and uneasy investors push rates lower)
  • Oil remained at $49 a barrel (neutral for rates)
  • The yield on ten-year Treasuries fell two basis points (2/100ths of one percent) to 2.07 percent (good for rates, because mortgage rates tend to move in the same direction as Treasuries -- however, anything below 2.20 is low)
  • CNNMoney’s Fear & Greed Index fell one point to a "Fearful" 42. This is okay for rates, because the index is moving in a more fearful direction, and fearful investors turn to bonds and mortgage-backed securities. That forces their prices up and rates down. But a one point movement is just neutral.

Mortgage rates today are still very favorable for home buyers. The climate is highly-encouraging for real estate purchases.

Monday

There will be no economic reports on Monday that pertain to interest rates. We will see what happens over the weekend and go from there.

Rate lock recommendation

Mortgage rates are low this morning but data indicate that they could go higher today. As low as they are, I'd probably lock if I had a loan closing soon.

Here's the recommendation:

  • LOCK if closing in 7 days
  • LOCK if closing in 15 days
  • LOCK if closing in 30 days
  • FLOAT if closing in 45 days
  • FLOAT if closing in 60 days

What causes rates to rise and fall?

Mortgage interest rates depend on a great deal on the expectations of investors. Good economic news tends to be bad for interest rates, because an active economy raises concerns about inflation. Inflation causes fixed-income investments like bonds to lose value, and that causes their yields (another way of saying interest rates) to increase.

For example, suppose that two years ago, you bought a $1,000 bond paying five percent interest ($50) each year. (This is called its “coupon rate.") That’s a pretty good rate today, so lots of investors want to buy it from you. You sell your $1,000 bond for $1,200.

When rates fall

The buyer gets the same $50 a year in interest that you were getting. However, because he paid more for the bond, his interest rate is not five percent.

  • Your interest rate: $50 annual interest / $1,000 = 5.0%
  • Your buyer’s interest rate: $50 annual interest / $1,200 = 4.2%

The buyer gets an interest rate, or yield, of only 4.2 percent. And that’s why, when demand for bonds increases and bond prices go up, interest rates go down.

When rates rise

However, when the economy heats up, the potential for inflation makes bonds less appealing. With fewer people wanting to buy bonds, their prices decrease, and then interest rates go up.

Imagine that you have your $1,000 bond, but you can't sell it for $1,000, because unemployment has dropped and stock prices are soaring. You end up getting $700. The buyer gets the same $50 a year in interest, but the yield looks like this:

  • $50 annual interest / $700 = 7.1%

The buyer’s interest rate is now slightly more than seven percent.

Click to see today's rates (Sep 23rd, 2017)

 

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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2017 Conforming, FHA, & VA Loan Limits

Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)