Mortgage rates had a good week this week as Thursday’s CPI report came in better than expected. The month-over-month number was expected to be at 0.2%, but it came in at 0.1%, which was actually rounded up from a lower 0.065%. If this number was repeated over the course of a year, then it would put the yearly rate at only 0.78%. The “shelter component” of CPI (the one that tracks housing expenses) had a big move to the downside and was a large reason for the month-over-month number coming in lower. Even though mortgage rates had a good reaction to the CPI report, there was not a massive move down. This does set the trend for the Fed, as they look to the possibility of cutting rates this coming Fall/Winter.
Today’s Producer Price Index, which is a measure of inflation in wholesale prices, did come in a little worse than expected and has put a damper on lower rates for today. The PPI is a closely watched inflation report, but it does not hold nearly the same weight that the CPI does.
Next week we have the Retail Sales report on Tuesday, and several Fed members are going to be giving closely watched speeches later in the week.
As a reminder, the NAR Settlement changes will go into effect 8/17/2024. FreddieMac & FannieMae have both released updated Selling Notices regarding Real Estate Commissions and Interested Party Contributions. To sum it up, “If a seller or seller’s real estate agent continues to pay the buyer’s real estate agent commission in accordance with local common and customary practices, these amounts are not required to be counted towards the IPC limits for the transaction.” This is good news, specifically in regards to New Construction, since many homebuilders are offering significant incentives to cover closing costs, prepaids, rate buydowns, etc…these credits are counted against the IPC (Interested Party Contribution) Limits, from a Lending Guideline standpoint. IPC limits range anywhere from 3%-9%. With Fannie & Freddie’s decision not to count seller paid buyer’s agent commission as an IPC “in accordance with local common and customary practices” prevents the Buyer/Borrower from having to leave money on the table or be financially responsible to pay the Buyers Agent commission.
The next Federal holiday is Labor Day, Monday, September 2nd. All Federal, State, and County offices will be closed this day. There will be no fundings or recordings on this day. Our office will be closing at 2pm on Friday, August 30th as well.
Appraisal Turn Times: Vancouver/Portland Metro Area: 4-6 days; Cowlitz County: 6-8 days; Lewis County: 7-9 Days; Skamania County: 8-10 days.
Today’s Rates for the Home Advantage Down Payment Assistance Loan with the WSHFC. Down Payment assistance with Home Advantage is 3% - 5% of the loan amount, depending on the pricing/program chosen. I am a Commission-trained Loan Officer authorized to work with the WSHFC. I’m happy to meet with your clients to see if they are eligible for the Home Advantage program or any of the other down-payment assistance programs available with the WSHFC.
Mortgage News Daily fixed rate index for 07/12/2024
30-year Conventional – 6.82%
15-year Conventional – 6.32%
30-year Jumbo – 7.05%
30-year FHA – 6.25%
30-year VA – 6.26%
Have a great weekend!
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