August 23 mortgage rates drop in the wake of poor jobs report, Fed frustration
After several straight weeks of cost increases, rates have plummeted, in some cases by 3/4 of a point. Minutes from the Fed’s latest meetings reveal that the FOMC is concerned about the strength of the economy and is seriously considering another round of Quantitative Easing (QE3), a step that has been resisted thus far. The price of U.S. government debt rose, dropping the yield of the 10-year Treasury and bringing mortgage rates down with it.
Meanwhile, a worse-than-expected weekly jobless report sent stocks lower to begin trading on Thursday. There were 4,000 more initial claims for unemployment last week, bringing the total to 372,000, the highest in five weeks. The four week average ticked up slightly, but remains at the low end we have seen this year.
One piece of good news – manufacturing improved in August. The Purchasing Managers Index edged up to 51.9. Any reading above 50 indicates expansion of the sector. Still, hiring slowed, and sluggish demand overseas kept growth at a minimal level.
The Dow finished Thursday with its first triple-digit loss of August, but is up by over 75 points to begin Friday’s trading day. Expect rates to edge upward if equities continue to rally throughout the day.
30 year fixed –
3.250 percent (3.392 percent APR)
3.250 percent (3.341 APR)
- 0.051 APR
15 year fixed –
2.750 percent (2.827 percent APR)
2.750 percent (2.791 percent APR)
- 0.036 APR
30 year High BalanceLast week:
3.375 percent (3.449 percent APR)
3.375 percent (3.460 percent APR)
+ 0.011 APR
30 Year FHALast week:
3.250 percent (4.041 percent APR)
3.250 percent (3.997 percent APR)
- 0.044 APR
30 Year VALast week:
3.250 percent (3.267 percent APR)
3.250 percent (3.239 percent APR)
- 0.029 APR
APR is subject to increase and terms subject to change. APRs may very depending on loan details such as points, loan amount and loan-to-value, your credit, property type and occupancy. Closed rate and APR assume a rate and term refinance of a single family detached owner-occupied primary residence, loan amount $417,000 ($561,200 for high balance), and a minimum FICO score of 760. Situations vary based on applicant.
Central Coast Lending is a California mortgage brokerage based in San Luis Obispo County. With offices in San Luis Obispo, Morro Bay, Paso Robles, and Arroyo Grande, Central Coast Lending is the top source for Central Coast mortgage, real estate, and home loan needs. To see why using a broker offers lower rates and superior service, click HERE. For a free, easy online pre-qualification click HERE or call 805.543.LOAN to talk to one of our expert loan officers. Central Coast Lending: The Mortgage Experts.
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