The new Fed Chair Jerome Powell appeared for his first time in front of Congress this week. His upbeat economic views moved markets and put pressure on current rates. Consumer prices increased in January, and inflation had its largest gain in 12 months. Inflation pressures rates higher, including mortgage rates. The labor market continues to show strength as well. Filings for unemployment benefits fell last week to the lowest in almost 50 years.
Home prices accelerated in December, according to a recent Case-Shiller report. Prices were up 6.4% year-over-year with continued strong buyer demand. Pending home sales were down almost 5% in January. However, the drop is like due to tight inventory and poor weather rather than increased mortgage rates. Buyer traffic was strong in January, but listings fell to an all-time low, down almost 10% year-over-year. Which, can continue to file price gains.
Conforming 30 year fixed 4.750%
Conforming 15 year fixed 4.500%
Jumbo 30 year 4.500%
Jumbo 30 year 5/1 ARM 4.125%
FHA 30 year 4.990%
VA 30 year 4.875%
Need a loan preapproval? Give us a call: Diversified Capital Funding
Eric Muller - Mortgage Loan Officer, 925-708-0957, Eric@divcap.net