Mortgage rates have fought their way back down from their highest rates in several weeks. Rates spiked following the Jackson Hole Symposium on Friday. The markets took the comments out of the Fed as an indicator that a rate hike (or two!) in 2016 was still likely. One important fact to point out is that while the Fed rate does not directly influence the mortgage rates in the way that the MBS do, the MBS typically will lose some ground if the Fed rate increases. Coming into the new week, we see a balancing out to the knee-jerk reaction on Friday. This pnenomenon could very well have been the result of fewer market participants weighing in (summer vacation mode?). Bond markets are back to their pre-Fed levels, and lenders will be pricing accordingly in the coming days. The economic reports set to be released in the end of this week will likely dictate where we go from here. Check back here for more mortgage news and rate updates.
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• 30 year (FRM) rates at 3.42% (-0.01%).
• 15 year (FRM) rates at 2.76% (-0.01%).
• FHA 30 year Fixed rates at 3.25% (+0.00%).
• Jumbo 30 year Fixed rates at 3.52% (-0.01%).
• 5/1 ARM rates at 2.85% (-0.01%).
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