More Measured and Sustainable Rate Reductions to Year Lows Over the Last Two Weeks.
Approximate Rates for Week Ending 8/23/24
Three weeks ago, rates suddenly dropped to year-long lows but quickly bounced back the next business day. Since then, they have more slowly settled back down to those same levels. Usually, slow steady reductions are more sustainable. Fed Chairman Powell’s comments at the Jackson Hole conference reinforced the view that the Fed will reduce short term rates by 0.5% at their September meeting. Please remember that short term rates are not directly correlated to long term home loan rates and the 0.5% reduction has likely already been baked in.
67% of experts think rates may come down over the next week while 33% think they will stay steady, and none think they will go up!
If you have any questions or would like advice tailored to your needs, I would be happy to help! And if you have any family or friends that you think might benefit from my services, I would be grateful for the referral.
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Mark Smith
Victoria Capital
Los Gatos
408 353 9784
www.MarkSmithLoans.com
LOWER HOME AFFORDABLE RATES FOR FIRST TIME HOMBUYERS (FTHB) SUBJECT TO INCOME LIMITS
|
Program |
No Points (APR) |
1 Point (APR) |
Change since last update |
|
Conforming (<$766,550) |
|||
|
30yr Fixed |
5.875% (6.02%) |
5.5% (6.09%) |
-0.25% |
|
30yr FHA |
5.25% (6.11%) |
5.0% (6.18%) |
-0.25% |
|
30yr FTHB |
6.0% (6.02%) |
5.75% (6.09%) |
-0.25% |
|
10yr ARM |
N/A |
N/A |
- |
|
7yr ARM |
N/A |
N/A |
- |
|
5yr ARM |
N/A |
N/A |
- |
|
15yr Fixed |
5.25% (5.31%) |
4.875% (5.33%) |
-0.125% |
|
High-Cost Conforming (>$766,550<$1,148,825) * |
|||
|
30yr Fixed |
6.125% (6.31%) |
5.875% (6.34%) |
-0.375% |
|
30yr FHA |
5.5% (5.71%) |
5.125% (5.61%) |
-0.125% |
|
30yr FTHB |
6.0% (6.12%) |
5.75% (6.19%) |
-0.125% |
|
5yr ARM |
N/A |
N/A |
- |
|
15yr Fixed |
5.875% (5.98%) |
5.25% (5.81%) |
No Change |
|
Jumbo (>$1,148,825) * |
|||
|
30yr Fixed |
6.5% (6.69%) |
6.125% (6.72%) |
-0.125% |
|
10yr ARM |
6.375% (6.51%) |
6.0% (6.59%) |
No Change |
|
7yr ARM |
6.25% (6.41%) |
5.75% (6.49%) |
No Change |
|
5yr ARM |
6.125% (6.31%) |
6.0% (6.3%) |
No Change |
|
15yr Fixed |
6.375% (6.51%) |
6.125% (6.59%) |
-0.125% |
No Points No Cost Also Available!
Conforming Rates and APRs calculated on Purchase loan amount of $600k (conforming), $760k (high-cost conforming,) and $1.1m (Jumbo) 30- day lock, 60% LTV, impounds,780 fico.
FTHB (First Time Home Buyer) conforming rates based on purchase loan amount of $750,000 with 20% down, High Cost Conforming $1m with 20% down. Subject to Income Limits
FHA Rates and APRs Calculated on Purchase Loan amount of $700k (Conforming) and $1m (High Cost), 30-day lock, 96.5% LTV, 720 Fico
This is not a commitment to lend. Rates are provided for informational purposes only. Please contact me for rates, products, and costs for your individual situation.
*Assumes high-cost areas, e.g., Santa Clara County and other Bay Area Counties
DRE: 01395052
NLMS:308562
