Daily Rate Update: Mortgage Rates End Week Near Best Levels

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30 Year Fixed
4.65% -0.01
15 Year Fixed
4.15% -0.02
10YR Treasury
2.86% +0.0018
FNMA 30YR 3.5
99.41 +0.05
FNMA 15YR 2.5
99.39 +0.02
View Today’s Rates
Mortgage Rates End Week Near Best Levels
August 31, 2018
Mortgage rates caught a break to end a week that was otherwise spent moving higher. Although we did see a bit of improvement in underlying bond markets yesterday, lenders were still getting rate sheets caught up with Wednesday afternoon’s bond market weakness. As such, we were left with a decent trading day but no improvement in rates.

In order to see that improvement, we needed this morning to bring stronger trading levels and that’s exactly what it did. Lenders were consequently able to offer token improvements in the upfront costs attached to the same old rate quotes that have prevailed for weeks.

In other words, bond markets aren’t moving enough for actual mortgage rates to change. Instead, movement is limited to the upfront costs (or credits) associated with any given loan–something that allows for finer tuning than the typical .125% gap between mortgage rate offerings.

Monday is a bank holiday. Virtually every mortgage lender will be closed, and unable to process rate lock requests. Lenders will not be updating rate sheets until Tuesday.

Loan Originator Perspective

Bonds posted small gains today, as market participants headed for the exits early. September brings the potential for greater rate volatility, the trend (if any) is still not our friend. I’m locking new loans closing within 45 days. Happy Labor Day weekend, all. –Ted Rood, Senior Originator

Today’s Most Prevalent Rates

  • 30YR FIXED – 4.625-4.75
  • FHA/VA – 4.25-4.5%
  • 15 YEAR FIXED – 4.125%
  • 5 YEAR ARMS – 3.75-4.25% depending on the lender


Ongoing Lock/Float Considerations

  • Rates moved higher in a serious way due to several big-picture headwinds, including: the Fed’s rate hike outlook (and general policy tightening), the increased amount of Treasury issuance to pay for the tax bill (higher bond issuance = higher rates), and the possibility that fiscal stimulus results in higher growth/inflation.
  • Despite those headwinds, the upward momentum in rates has cooled off heading into the summer months. This could merely be the eye of the storm, or it could end up being the moment where markets began to doubt that prevailing trends would continue.
  • It makes sense to remain defensive (i.e. generally more lock-biased) because the headwinds mentioned above won’t die down quickly. Temporary corrections can be explained away, but it will take a big change in economic fundamentals or geopolitical risk for the big picture to change. While that doesn’t necessarily mean rates have to skyrocket, there’s a good chance it means rates will struggle to move much lower than early 2018 lows until more convincing motivation shows up.
  • Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders. The rates generally assume little-to-no origination or discount except as noted when applicable. Rates appearing on this page are “effective rates” that take day-to-day changes in upfront costs into consideration.

30 Year Fixed Rate Mortgage
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15 Year Fixed Rate Mortgage
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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.65% -0.01
15 Yr FRM 4.15% -0.02
FHA 30 Year Fixed 4.37% -0.01
Jumbo 30 Year Fixed 4.33% -0.02
5/1 Yr ARM 3.98% -0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.65% 1.14 +0.09
30 Yr. Fixed 4.19% 1.21 +0.02
MBA ** hdr_arrow.png
30 Yr. Fixed 4.68% 0.46 -0.01
15 Yr. Fixed 4.12% 0.51 +0.05
30 Yr. Jumbo 4.55% 0.37 +0.00
30 Yr. FHA 4.69% 0.81 -0.04
5/1 ARM 3.83% 0.68 -0.10
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.52% 0.50 +0.01
15 Yr. Fixed 3.97% 0.50 -0.01
1 Yr. ARM 2.68% 0.20 +0.01
5/1 Yr. ARM 3.85% 0.30 +0.03

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 96.64 -0.05
30YR FNMA 3.5 99.41 +0.05
30YR GNMA 3.0 97.81 +0.08
30YR GNMA 3.5 100.13 +0.03
15YR FNMA 3.0 99.39 +0.02
15YR FNMA 2.5 97.23 +0.05
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
2 YR 2.6290% -0.0243
5 YR 2.7382% -0.0135
10 YR 2.8604% +0.0018
30 YR 3.0191% +0.0120
Prices as of: 8/31/2018 5:05PM EST

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About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available. We use a proprietary formula to calculate averages based on best-execution rates from top lender’s rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.
© 2018 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
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This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.
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