Mortgage rates started stronger out of the gate, but Wednesday morning weakness in bond markets prompted many lenders to adjust rates higher by early afternoon on Wednesday. On balance, the average lender ended the day just a hair better than yesterday’s latest levels. To be clear, we’re talking about microscopic differences. Note rates are the same as yesterday. The most prevalent conventional 30yr fixed quote is 4.25%, followed closely by 4.125%. The microscopic improvement refers to changes in upfront costs/credits.
In the bigger picture, rates remain very close to the highest levels in more than 2 years. November proved to be one of the worst months in mortgage rate history, based on the abruptness of the move higher. The damage was primarily due to investors rapidly reassessing future growth and inflation potential following the election. By comparison, Fed policy has been less consequential. But tomorrow’s Fed announcement can still cause volatility for rates.
While there is widespread agreement that the Fed will hike its policy rate tomorrow, investors are nonetheless curious to see how the Fed’s economic projections evolve. This will help market participants get an idea of how the Fed is leaning with respect to future hikes, and it’s the expected pace of those future hikes that do most to influence mortgage rates in the present.
Some of the latest, local mortgage rates according to Bankrate.com are:
|Pinnacle National Bank||4.272%|
|Community First Bank||4.153%|
|IAB Financial Bank||4.273%|
* The above mortgage loan information is provided to, or obtained by, Bankrate. The rate is based on 30 year fixed rate mortgage and a loan of $300,000.