Greetings,
Last week saw mortgage rates moving slowly upward as inflation concerns continued to dominate market chatter. While some experts maintain that the inflationary pressures we are experiencing are transitory, others are pointing to evidence on the contrary. With supply chain issues continuing to grow, climbing energy prices, and improving incomes, a case can be made that inflation may stick around for a while. With these inflation pressures continuing, the Fed will be left with fewer options and a shorter timetable in which to counter inflation, should inflation not begin to moderate. Against this backdrop, we’re seeing more signs of slowing economic activity. Industrial Production came in well below estimates, but much of that may be attributable to the effects of Hurricane Ida.
This week the Fed’s preferred inflation index is released. If PCE core prices come in over expectations, then rates will continue to move upward. However, while the market is prepared for GDP to be lower in Q3, the drop may create some pessimism that could help hold rates down a bit.
Here are key interest rates at open of business this morning to begin the week of October 25th:
• 30-Year Fixed: 3.125%
• 20-Year Fixed: 2.875%
• 15-Year Fixed: 2.375%
• FHA 30-Year Fixed 2.990%
• VA 30-Year Fixed 2.990%
• Jumbo 30 Year Fixed 3.000%
• Prime Rate: 3.250%
• 20-Year Fixed: 2.875%
• 15-Year Fixed: 2.375%
• FHA 30-Year Fixed 2.990%
• VA 30-Year Fixed 2.990%
• Jumbo 30 Year Fixed 3.000%
• Prime Rate: 3.250%
As always, thank you for your business and should I be of any assistance, please don’t hesitate to email or call!
** Please note that I am licensed in the following states: MN, WI, FL & AK **
Best,
Matt Grant
Producing Branch Manager
NMLS# 324106
10400 Yellow Circle Drive, Suite 320
Minnetonka, MN 55343
Email: matt.grant@fairwaymc.com
