Members of the Fed expressed expectations that inflation will continue to rise this year. Higher inflation will likely contribute to higher mortgage rates. The 10-yr Treasury broke the 3% yield mark for the first time since 2014. While inflation is growing domestically, lack of inflation is still a concern overseas. The European Central Bank is continuing economic stimulus, helping to keep rates lower here. After 3 months of declines, retail sales were up in march. The increase was fueled by auto sales and big ticket household purchases. Consumer confidence rebounded in April, pointing to underlying strength in the economy. Strong confidence is likely to fuel an increase in consumer spending.
New home sales, which account for 11% of the housing market, increased 4% in March. That’s an 8.8% increase from a year ago, a considerable jump. April housing stats were up even more than expected. The increase included a rebound in multi-family home construction. The number of homeowners benefiting from the mortgage tax break is expected to drop by half in 2018. Only about 20% of all taxpayers have used the break in recent years.
Check out these great rates and give me a call today!
Conforming 30 year fixed 4.750%
Conforming 15 year fixed 4.375%
Jumbo 30 year 4.250%
Jumbo 30 year 5/1 ARM 3.875%
FHA 30 year 4.750%
VA 30 year 4.750%
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Eric Muller - Mortgage Loan Officer, 925-708-0957, Eric@divcap.net