Mortgage rates today gave back the gains they made yesterday. September'sÂ Existing Home Sales report from the National Association of Realtors delivered unexpectedly good news for the industry, which is not necessarily good for interest rates.
Nearly 5.4 million houses changed hands last month, while analysts had expected 5.3 million. Demand for homes means demand for mortgages, which can push prices up.
In addition the this report, today's data (below) also influence what you'll pay for a loan this morning.Click to see today's rates (Oct 22nd, 2017)
|Conventional 30 yr Fixed||3.750||3.750||Unchanged|
|Conventional 15 yr Fixed||3.125||3.125||Unchanged|
|Conventional 5 yr ARM||3.250||3.703||Unchanged|
|30 year fixed FHA||3.375||4.360||Unchanged|
|15 year fixed FHA||3.000||3.946||Unchanged|
|5 year ARM FHA||3.375||4.277||+0.05%|
|30 year fixed VA||3.500||3.672||Unchanged|
|15 year fixed VA||3.250||3.559||Unchanged|
|5 year ARM VA||3.500||3.502||+0.04%|
Today's indicatorsÂ mostlyÂ point to rising rates.Â I'd probably hold off locking until Monday, as Friday rates tend to be a little overstated anyway.
Mortgage rates todayÂ are still very favorable for home buyers. The climate is highly-encouraging for real estate purchases.
There has been nothing that exciting in mortgage rates this week, but the market data indicate that rates could rise in the near-term. The lock decision mainly rides on your comfort with risk. Rates are good now if you want to "set it and forget it."
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 payingÂ five percent interest ($50) each year. (This is called its â€ścoupon rate.") Thatâ€™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.
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.
TheÂ buyer gets an interest rate, or yield, of only 4.2 percent. And thatâ€™s why, when demand for bonds increases and bond prices go up, interest rates go down.
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 gettingÂ $700. The buyer gets the same $50 a year in interest, but the yield looks like this:
The buyerâ€™s interest rate is now slightly more than seven percent. Interest rates and yields are not mysterious. You calculate them with simple math.Click to see today's rates (Oct 22nd, 2017)
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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)