Mortgage Rates Slip - 6/24/2022

Economy News

  • In testimony to Congress this week, Fed Chair Powell acknowledged that steep Fed interest rate hikes could tip the US economy into recession.
  • As fears of a coming recession from Fed rate hikes replace fears of inflation in investors’ minds, mortgage rates are able to improve.
  • Unemployment claims last week fell to 227K as the labor market continues to show strength despite Fed rate hikes and recession concerns.

Housing News

  • Mortgage rates have experienced tremendous volatility since inflation data was released June 10, but mortgage purchase applications rose 8%.
  • Existing home sales fell 3.4% in May, the 4th month of declines and the weakest reading since June 2000.
  • The median existing-home sales price topped $400K for the first time, reaching $407,600 in May, 14.8% higher than the same time last year.

Published interest rates based on the following scenarios: Conventional HomeReady/HomePossible $450,000 purchase price, 95% LTV, 740+ credit score. FHA $450,000 purchase price, 96.5% LTV, 740+ credit score. VA $450,000 purchase price, 100% LTV, 740+ credit score. High Balance Conventional $750,000 purchase price, 90% LTV, 740+ credit score. Jumbo $1M purchase price, 75% LTV, 760+ credit score. Rates subject to change, 30 day rate locks quoted.