Another Day Without Any Major Mortgage Rate Movement, So Let's Talk Rate Index Methodology

I like to write at least a small amount every day to recap mortgage rate movement. After all, they change every day by at least some small amount and on the rare occasions where they're perfectly flat, there's usually something interesting to consider on the horizon. This particular week is making it tough to stick to that routine. Rates have been effectively unchanged on 5 out of the past 5 business days with the average top tier 30yr fixed rate holding in a range of 6.64 to 6.66%. Notably, we received some feedback that called those rates into question over the past 5 days. It wasn't widespread, but it was vitriolic at times. In cases where people weren't interested in objectivity, or were unwilling to accept that their own rates were not coming down as quickly as the broader market, I could only advise them to wait and see where Freddie Mac's weekly survey came out (spoiler alert: 6.67%). What does that rate mean though? We get that question a lot. A top tier, index rate is just that: top tier. There's nothing above it in terms of qualifications. It is the rate with the lowest amount of penalization for things like loan-to-value ratio or credit score (or property type, or occupancy, etc.). It is NOT the lowest rate offered. In our case, it's the average offering in the competitive range of lenders. If our index is at 6.66% as it is today, there will be multiple lenders offering 6.5%, and a few down in the 6.25-6.375% range. There will also be lenders at 6.875-7.125%. On scenarios with less than 20% down or credit scores under 780 (or other details that result in pricing "hits"), you would also expect to see a higher rate than seen in the big picture indices.

December 21, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Another Day Without Any Major Mortgage Rate Movement, So Let's Talk Rate Index Methodology I like to write at least a small amount every day to recap mortgage rate movement. After all, they change every day by at least some small amount and on the rare occasions where they're perfectly flat, there's usually something interesting to c... (read more) MBS Commentary Was The Fed Pivot a Surprise? Was The Fed Pivot a Surprise? There's been quite a bit of discussion in the news and on MBS Live surrounding a few interesting questions regarding the Fed's apparent pivot/shift on the rate outlook. Doe... (read more) Rob Chrisman TPO, Anti-Valuation Bias Tools; Retail and Broker News; Interview on Home Equity Levels “What do you call a Christmas wreath made out of $100 bills? Aretha Franklins.” It’s cutting-edge humor like this that keeps readers coming back for more, right? Or astronomy tips, as today is the Winter Solstice, with the least amount of sunlight in... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.66% +0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.66% +0.02 0.00 15 Yr. Fixed 6.06% +0.01 0.00 30 Yr. FHA 6.12% +0.02 0.00 30 Yr. Jumbo 7.01% 0.00 0.00 5/1 ARM 6.16% -0.01 0.00 30 Yr. VA 6.13% +0.02 0.00 Updates Daily - Last Update: 12/21 15 Yr. Fixed Rate 6.06% +0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 6.67% -0.28 0.00 15 Yr. Fixed 5.95% -0.43 0.00 Updates Weekly - Last Update: 12/21 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.07% -0.10 0.59 15 Yr. Fixed 6.67% -0.13 0.58 30 Yr. Jumbo 7.22% -0.13 0.37 Updates Weekly - Last Update: 12/13 MBS / Treasuries UMBS 30YR 5.5 100.31 -0.11 Price / Yield Change MBS UMBS 5.5 100.31 -0.11 UMBS 6.0 101.48 -0.02 GNMA 5.5 100.45 -0.11 GNMA 6.0 101.47 +0.05 Pricing as of: 12/21 5:31PM EST 10 Year US Treasury 3.8940 +0.0410 Price / Yield Change US Treasury 2 YR Treasury 4.356 +0.018 5 YR Treasury 3.882 +0.031 7 YR Treasury 3.909 +0.035 10 YR Treasury 3.894 +0.041 30 YR Treasury 4.035 +0.046 Pricing as of: 12/21 5:31PM EST Latest Video The Fed's dovish pivot: Was politics involved? Leading economic indicators down 0.5% for 20th straight negative months Third-quarter real GDP comes in lower than expected Top-tier office real estate will survive, says Piper Sandler's Alex Goldfar... Around the Web CNBC Home prices are up in all major U.S. cities, except one: 'The Austin housing market has whiplash,' says economist Eye on Housing Consumer Confidence Surged in December Marketwatch Jobless claims inch up to 205,000. Layoffs in the U.S. hover near record low. Eye on Housing Existing Home Sales Unexpectedly Rise Amid High Mortgage Rates Calculated Risk Blog ICE: Mortgage Delinquency Rate Increased Slightly in November CNBC 10-year Treasury yield falls as investors continue to assess path ahead for rate cuts Marketwatch Consumer confidence snaps back at year end Calculated Risk Blog Q3 GDP Growth Revised down to 4.9% Annual Rate Eye on Housing Property Tax Revenue Continues to Climb Calculated Risk Blog Hotels: Occupancy Rate Increased 1.1% Year-over-year CNBC Treasury yields dip slightly as Fed trajectory remains in focus Calculated Risk Blog NAR: Existing-Home Sales Increased to 3.82 million SAAR in November CNBC CNBC Daily Open: The bulls are back on Wall Street

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