Rates
As of Monday morning, rates are up a tick from Friday’s closing:
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Important notes for understanding and using this information:
- Any site/chart that advertises rates (like the above) is showing a national average for one very specific loan scenario, as reported by survey respondents. These aren’t the rates that borrowers are locking in. Use this only as a tool to get a gauge of what ballpark to expect
- 30 Yr Fixed Conventional: a “top tier” scenario is used as a baseline (owner occupied, single family, 25% down, 780+ credit)
- Most important point: the best use of this index is to track the CHANGE from week to week. There are so many things that can cause discrepancies between borrowers, lenders, and quotes.
Commentary
Up until last Friday, 10yr yields closed at 4.17% for 5 days in a row. Last Friday threw a bit of a curveball with a small but noticeable break to even lower yields. At the start of the new week, bonds have moved quickly back to the familiar consolidation range marked by a floor of 4.17. Meaningful improvement from here will require concrete motivation from this week’s CPI/PPI.
Lock/Float Considerations
Rates are at the lowest levels in a month and a half after a friendly jobs report. That’s a compelling lock opportunity for the risk averse crowd. While there’s no guarantee that recently friendly momentum will continue, the risk-tolerant crowd tends to wait and see if the market starts trending upward before acting.
Econ Calendar – Potential Market Movers
- Wed., 12/11 – Core CPI – Consumer Price Index
- Thurs., 12/12 – Core PPI – Producer Price Index
- Thurs., 12/12 – Jobless Claims
Loan Program Updates
- 2025 Loan Limits are live:
- Conventional 1 unit: $806,500
- Conventional 2 units: $1,032,650
- FHA 1 unit: $524,225
- FHA 2 units: $671,200