Today’s Mortgage Interest Rates – October 13th, 2021
TODAY’S INTEREST RATES – October 13th, 2021
Rates trended higher again this past week despite lower than projected job creation.
The August report was interesting as job creation was over 200k lower than projections, but Multiple other parts of the report were improved.
Employment rate went down .4%
Wages increased
Work week hours increased
It appears that employers want more employees but many people don’t want to go back to work.
The Mortgage Backed Security chart below showing mostly negative or red recently correlates to higher interest rate pricing.
In the FED Minutes released today, the Federal Reserve Board said it could begin gradual tapering process in November.
The FED detailed that the process could begin by cutting 10 billion a month in Treasury purchases And 5 billion a month in Mortgage Backed Securities.
I expect rates to continue to slowly rise as this happens.
See below interest rates for well qualified borrowers.
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Today’s Mortgage Interest Rates
Rates stabilized in the past week after going up .125% to .25% the week prior.
The US Non Farm Jobs Report is released for September. Expectations are for about 475,000 jobs created and the unemployment rate to drop from 5.2% to 5.1%.
If the job creation meets expectations, it’s highly likely the FED announces a Bond Taper at their next meeting.
Inflation is high and with the economy showing signs of continuous improvement, the thought is that tapering would need to follow.
With Mortgage Applications at 3 month lows, I would encourage urgency to get under contract and a rate locked in before a FED taper likely raises rates.
See interest rates for well qualified borrowers.
Jim Szabo is On Call for Team Green
🍏 Jim Szabo is
☎️ On Call
🌵 this weekend for Team Green
Contact him all weekend with your lending questions and prequalification needs.
🪀 Jim Szabo
🥗 Team Green with Fairway
🍀 He Does Mortgages. Better.
🐸 480-440-8144
🛣 jims@fairwaymc.com
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Today’s Interest Rates
TODAY’S INTEREST RATES
As discussed in last week’s update, The FED put in their statement that a bond taper would be coming soon.
The full effect of that over that afternoon and the following days has been a major decrease in
Mortgage Backed Security (MBS) prices which has equaled higher interest rates of about .125 to .25% higher.
We’ve discussed this before, but this quick rate increase happened and the FED didn’t even say when they were going to taper.
I expect rates to rise even more when they actually do taper.
Below is a good infographic going over estimates of where rates will go and
Some other useful information for home buyers.
Remember that rates going up usually affects buyers more than housing prices going up.
If rates go up 1% – that’s about a $165 higher payment on a $300,000 loan.
Homes prices have to go up $37,000 for the same payment increase.
See below for interest rates for well qualified borrowers.
Aaron Kerscher is On Call
☎️ On Call
🌵 this weekend for Team Green
Contact him all weekend with your lending questions and prequalification needs.
🪀 Aaron Kerscher
🥗 Team Green with Fairway
🍀 We Do Mortgages. Better.
🐸 480-228-1089
🛣 aaron.kerscher@fairwaymc.com
