This Market Update is written by our Capital Market specialists each week to bring you insight into what's happening in the market and how it may affect mortgage rates and real estate trends.
Rates are provided by Housing Wire in conjunction with Polly. Rates are updated in real-time. Polly data is calculated using actual locked rates. Rates are inclusive of locks that occur below par, at par and therefore consider discounts and rebates.
Market Commentary:
For the week of March 29th to April 4th, the 30-year fixed-rate mortgage is 21 basis points higher than one week ago and 49 basis points higher than one year ago. Inflation continues to persist at a higher rate than the Fed would like, as evidenced by the CORE PCE and much higher-than-expected Manufacturing numbers.
Fed Watch:
Looking ahead to the upcoming May 1st, Federal Open Market Committee (FOMC) meeting. According to the CME Group, 0.00% of forecasters predict an increase in interest rates, while 96.7% predict rates will remain the same. 3.3% of forecasters expect rates to decrease. As per CME, 55.5% of economists forecast a 0.25% rate reduction in June. The Fed is still forecasting three rate cuts in 2024.
Market Review:
Per Black Knight's Production Metrics, the breakdown of mortgage production volume is as follows: 85.33% for purchase transactions, 11.09% for cash-out refinances, and 3.58% for rate and term refinances.
Per Black Knight 57.26% of all Retail loan production were Government Loans (FHA, VA, USDA), while 42.74% were Conventional and Non-Conforming loans.
News You Can Use:
- Home Sellers Don’t Hold All the Cards This Spring: 15% of Them Have Slashed Prices
- Here's how much money you need to make to afford a home
- Which State Really Has the Lowest Taxes? This Is the True Cost of Local Levies
- America’s Hottest Markets Might Be Cooling Off—With Price Drops in 4 Cities
- Fed officials still expects rate cuts this year, but not anytime soon
*Communication is intended for Industry Professionals only and not intended for Consumer Distribution
Interest rate and annual percentage rate (APR) are based on current market conditions as of 04/04/2024, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score and other variables. Estimated closing costs used in the APR calculation are assumed to be paid by the borrower at closing. If the closing costs are financed, the loan, APR and payment amounts will be higher. Contact us for details. Additional loan programs may be available. Accuracy is not guaranteed, and all products may not be available in all borrower's geographical areas and are based on their individual situation. This is not a credit decision or a commitment to lend. actual interest rate, APR, and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Prosperity Home Mortgage, LLC. Not available in all states. Rate is as of 04/04/2024 and is subject to change at any time without notice. Opinions, estimates, forecasts, and other views contained in this document are those of Freddie Mac's economists and other researchers, do not necessarily represent the views of Freddie Mac or its management, and should not be construed as indicating Freddie Mac's business prospects or expected results. Although the authors attempt to provide reliable, useful information, they do not guarantee that the information or other content in this document is accurate, current, or suitable for any particular purpose. All content is subject to change without notice. All content is provided on an "as is" basis, with no warranties of any kind whatsoever. Information from this document may be used with proper attribution.
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