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%
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 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.