Freddie Mac’s PMMS was released this morning showing that mortgage appear to be calming down…for now.
From Freddie Mac’s Chief Economist Stan Becketti:
“For the last 46 years, the 30-year mortgage rate has been almost perfectly correlated with the yield on the 10-year Treasury, but not this year. From Dec. 29, 2016, through today, the 30-year mortgage rate fell 17 basis points to this week’s reading of 4.15 percent. In contrast, the 10-year Treasury yield began and ended the same period at 2.49 percent. While we expect mortgage rates to fall into line with Treasury yields shortly, this just may be a year full of surprises.”
As I right this post, mortgage rates are slightly higher than what the PMMS is showing. Remember, the Prime Mortgage Market Survey (PMMS) is based on last week’s rates. The survey is also based on conforming mortgages with loan to values at 80% or lower. So if you have a “conforming high balance or a jumbo mortgage, your rates will be different. The same is true for FHA, VA or USDA mortgages. And again, the only way you can have “last week’s rates” is if you locked that rate last week.
The PMMS is a great tool to illustrate the direction of where mortgage rates have been. Mortgage rates, the pricing of a mortgage rate, may change constantly throughout the day.
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