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, payroll data for July made for major economic headlines. The number of new non-farm jobs added came in below expectations, but within range of normal fluctuations. New jobs numbers were revised up for the prior two months, which softened irrational reactions from pundits that the payroll miss would elicit. Zooming back to a 10 year view, the economy added jobs within a steady band.
Overall, the miss on new jobs created possibly gave the feds pause during their August meeting. We think it just means the two further rate hikes that are expected will be squeezed into the September to December timeframe. There is no reason to believe that economic expansion has palpably started slowing down. For people that swear by the data, like the Federal Open Market Committee members, rate hikes will remain a valid tool until the data shows signs of the market cooling down.
Our Updated Jumbo Rates * (as of 08/06/2018)
Our rates moved down by 0.125% across the board. We proactively dropped rates, due to expectations that market interest rates will soften in the upcoming weeks.
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
* 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.