Mortgage rates are up about 0.125% this week, but it’s not really related to the weeks economic reports. Both inflation reports that came out this week, the CPI and PPI, hit expectations almost exactly. We also had higher than expected initial jobless claims on Thursday. When looking at the numbers from the economic reports this week, the question becomes why the weakness in the bond market, when we should have seen strength based on the reports? The answer to that question is purely speculative, but some reasons may be bond market positioning prior to the next Fed meeting and traders adjusting their positions as we reach the year end.
The Fed meets next week on the 17th and 18th. It is widely expected that they will cut rates again by 0.25%, with the market pricing in a 95% chance of this happening. The big thing to watch will be their guidance as to rate cuts moving forward into 2025. The expectation is that the Fed will slow down their pace of rate cuts in 2025, due to the fact that inflation has subsided a little, but is still above their target rate.
We are currently stuck between the high rates of earlier this year (average 30-year fixed in the mid 7’s) and the very brief lower rates (average 30-year fixed getting close to 6%) that we saw in October. A move back down closer to 6% would most likely bring on more purchase transactions and certainly higher refinance transactions.
Appraisal Turn Times: Vancouver/Portland Metro Area: 4-6 days; Cowlitz County: 6-8 days; Lewis County: 7-9 Days; Skamania County: 8-10 days.
Today’s Rates for the Home Advantage Down Payment Assistance Loan with the WSHFC. Down Payment assistance with Home Advantage is 3% - 5% of the loan amount, depending on the pricing/program chosen. I am a Commission-trained Loan Officer authorized to work with the WSHFC. I’m happy to meet with your clients to see if they are eligible for the Home Advantage program or any of the other down-payment assistance programs available with the WSHFC.
Mortgage News Daily fixed rate index for 12/13/2024
30-year Conventional – 6.92%
15-year Conventional – 6.20%
30-year Jumbo – 7.15%
30-year FHA – 6.28%
30-year VA – 6.30%
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