Mortgage Rates Fluctuate - 7/15/2022

Economy News

  • Inflation rose 9.1% in June, even more than the expected 8.8%. The increase seems to counter the narrative that inflation is peaking.
  • With inflation still increasing, there is talk that the Fed may raise policy rates a historic 1 percent at their July meeting.
  • The labor market remains strong despite recession concerns. Payrolls increased 372K in June, and wages rose 5.1% for a year ago.

Housing News

  • Demand for mortgages declined for the 2nd week, led by a dip in purchase apps, which fell 4% from the previous week.
  • According to the Mortgage Bankers Association, the average purchase loan amount fell to $415K last week, down from a $460K high in March.
  • NAR’s 2022 Member Profile showed that despite competition and low inventory, members’ median income rose $11K to $54,300 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.