Mortgage rates today are unchanged. Financial markets in the US close for the Thanksgiving holiday. However, the fed did release the minutes from its latest meeting yesterday afternoon, and that did move the needle before markets closed.
While Fed officials generally felt good about employment, consumer spending and manufacturing, they expressed concern about the latest surge in stock prices, and that a reversal could really damage the economy.
Some members believe that they should be more proactive about raising short-term interest rates, and that there is danger in waiting too long to deal with possible inflation. This lead some analysts to conclude that we will see another rate increase before the end of the year.
Keep in mind, however, that mortgages are long-term debts, not short-term. They are more likely to follow Treasury rates.
Verify your new rate (Nov 23rd, 2017)
|Conventional 30 yr Fixed||3.750||3.750||Unchanged|
|Conventional 15 yr Fixed||3.250||3.250||Unchanged|
|Conventional 5 yr ARM||3.375||3.830||Unchanged|
|30 year fixed FHA||3.375||4.360||Unchanged|
|15 year fixed FHA||3.125||4.072||Unchanged|
|5 year ARM FHA||3.250||4.345||Unchanged|
|30 year fixed VA||3.500||3.672||Unchanged|
|15 year fixed VA||3.250||3.559||Unchanged|
|5 year ARM VA||3.500||3.626||Unchanged|
US financial markets are closed. However, we live in a global economy these days. Some commodity prices and indexes changed since yesterday morning's report.
Mortgage rates today remain very favorable for anyone considering homeownership. Residential financing is still affordable.
Thanksgiving takes up the rest of the spotlight this week. Wednesday is the busy day, combining the reports of several days.
In general, 30-day is the standard price most lenders will (should) quote you. The 15-day option should get you a discount, and locks over 30 days usually cost more.
If you want to "set it and forget it," though, current mortgage rates are attractive enough to make that an okay move.
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.
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.
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.
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:
The buyer’s interest rate is now slightly more than seven percent. Interest rates and yields are not mysterious. You calculate them with simple math.Verify your new rate (Nov 23rd, 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)