Weekly Rate Update

February 21, 2020

Mortgage Rates Dip slightly

Economy News

  • Investors are increasingly worried about the spread of the coronavirus outside China. Concerns over the economic impact of the virus are helping rates remain low.

 

  • Producer prices increased by the most in more than a year in January, but most of the uptick appeared to reflect temporary price swings instead of an underlying increase in inflation.

 

  • Jobless claims rose modestly last week, suggesting sustained labor market strength that could help support the economy amid risks from the coronavirus.

Housing News

  • Builder confidence in the housing market remained strong in February, despite a shortage of workers and a dearth of lots. Rising wages and low rates are fueling demand.

 

  • New housing starts fell in January, although less than expected. Permits for new construction surged to a 13-year high, pointing to more building to come this year.

 

  • Mortgage applications were down 6.4% last week, mainly due to a drop in refinance activity. Purchase applications fell 3% but were 10% higher than a year ago.

Published interest rates based off the following scenarios: Conventional, HomeReady; $380k loan amount, 80% LTV, 740+ Credit Score and rate lock good for 30 days. FHA; $380k loan amount, 96.5% LTV, 740+ Credit Score, and rate lock good for 30 days. VA; $380k loan amount, 100% LTV, 740+ Credit Score, and rate lock good for 30 days. High Balance Conforming; $575,000 Loan amount, 75% LTV, 740+ Credit Score and lock good for 30 days. Jumbo; $800,000, 75% LTV, 760+ Credit Score and rate lock good for 30 days.