Eave’s “Just the Facts” is a weekly series designed to cut through the noise about home loan interest rates for borrowers and real estate professionals. 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 was the first official week of July and therefore brought a lot of vital economic data about the completed month of June.

Labor market remained at “growth economy” levels in June. Employers added 213,000 new jobs, while the numbers for May were revised up to 244,000 from 223,000. Gains in June were broad-based, with most industries adding jobs. The unemployment rate ticked up a bit due to an increased number of people coming back to the labor force in search of jobs. In addition, average hourly earnings increased by 2.7 percent on a year-over-year basis.

Activity in the factory sector remained strong in June as the ISM manufacturing index increased to 60.2 (i.e., more factories are expanding production than not). Activity outside of the manufacturing sector also picked up in June, as the ISM non-manufacturing index expanded to 59.1. New orders increased, while current business activity also strengthened. Supplier delivery times and backlogs moderated somewhat in June, but capacity constraints appear to remain in place. The prices paid index also came in above 60 for the sixth consecutive month, indicating a “growth dynamic” in demand vs. supply.

Construction spending remains on solid footing and is up 4.3 percent year-to-date through May.   

Overall, the economy continued its expansion story in June.  

Our Updated Jumbo Rates * (as of 07/09/2018)

Beyond the announced rate hikes, mortgage capital markets are not expecting further hikes and as a consequence, they lowered their pricing. So, we followed by lowering our interest rates by 1/8th of a point for the 30 yr Fixed product.

5/1 ARM – 4.000% Interest Rate, 4.705% APR
7/1 ARM – 4.125% Interest Rate, 4.650% APR
30yr FRM – 4.500% Interest Rate, 4.573% APR

You can view our real-time interest rates here.


* 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.