Eave’s “Just the Facts” is a weekly series designed to cut through the noise about home loan interest rates for homebuyers and real estate professionals. Predictions of interest rate movements tend to be inaccurate, because the events that impact them are complex and unpredictable. Eave doesn’t try to play the role of forecaster, who claims to have some special insight. Few do! Instead, our Chief Credit Officer covers what happened in the market last week.
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Last week, the economic data on factory orders and unit labor costs did not change prevalent views on US or global economic health. Therefore it’s business-as-usual for us at Eave on the rate setting front.
Speaking of, did you know that Mortgage lenders set their baseline rates for their best customers based on more than 10 factors related to bond market indexes and mortgage secondary market indicators? At Eave, we set our baseline rates by starting with broadly accepted bond market indexes like the yield on 10-year treasury bills and adding one constant factor that rarely changes. This factor reflects the minimum level of additional rate that loan investors will need for them to buy the loans from a lender like us. Every loan starts at this baseline rate. We made this simplification as part of our policy and practice to ensure a consistent pricing method applies for all borrowers.
Our Updated Jumbo Rates * (as of 06/11/2018)
Rates moved up a notch last week across the board. We see this as normal market fluctuation.
5/1 ARM – 4.25% Interest Rate, 4.718% APR
7/1 ARM – 4.375% Interest Rate, 4.706% APR
30yr FRM – 4.750% Interest Rate, 4.824% APR
* This estimate is informational only. It is not a commitment to lend. To apply for a loan, you’ll need to complete an application and provide additional information. Final approval of your loan is based on verification of your meeting the necessary underwriting criteria and property approval. The estimates for fees and other charges are not intended to be accurate until you have chosen a property and settlement service providers. Rates are estimates. Your final rate, loan product, and terms may be different. Normal credit qualifications and other terms and conditions apply. Products, rates and terms are subject to change unless product has been selected and rate has been locked after you have chosen a property.