Mortgage Rates Rise - 5/26/2023
Economy News
- Minutes from last month’s Fed meeting show officials were divided on the topic of pausing policy rate hikes at the June meeting.
- Concerns about the U.S. defaulting on debt payments dominate headlines. A default could be devastating for rates.
- Unemployment claims were revised lower for a 2nd week after fraud was detected. A strong labor market could support a Fed rate increase.
Housing News
- Pending home sales remained steady in April, after dropping in March. Sales were down 20% from last year due to the lack of inventory.
- Builders are attempting to abate the shortage. April new home sales jumped 4.1% for the month and 11.8% for the year to a 13-month high.
- Purchase mortgage applications were down 4% for the week and 30% year over year due to rate increases. Refi apps also fell.
Published interest rates based on the following scenarios: Conventional HomeReady/HomePossible $681,052 purchase price, 95% LTV, 760+ credit score. FHA $670,466 purchase price, 96.5% LTV, 760+ credit score. VA $647,000 purchase price, 100% LTV, 760+ credit score. High Balance Conventional $875,277 purchase price, 90% LTV, 760+ credit score. Jumbo $1,187,500 purchase price, 75% to 80% LTV, 760+ credit score. Rates subject to change, 30 day rate locks quoted.
