The average 30-year fixed rate mortgage was 6.09% yesterday, unchanged since the day before. The 15-year fixed mortgage rate stood at 5.26%, the same as one the day before. The 30-year FHA mortgage averaged 5.61% yesterday, having stayed the same. Meanwhile, the 30-year jumbo mortgage rate was 6.6%, reflecting no change.
Breaking news
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," said Powell. "This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions — or whether instead monetary policy will be directed by political pressure or intimidation," he continued.
Investors around the world place great value on the Fed's independence from political interference and its ability to set rates to promote the public good. If they perceive this morning's news as an attempt to strong-arm the central bank, we could see considerable volatility in markets and mortgage rates.
Already this morning, The Guardian is reporting, "The US dollar has continued to dip through morning trading in Europe; the dollar is now down 0.35% against a basket of other major currencies." And it quotes Goldman Sachs’ chief economist Jan Hatzius, who has warned this morning that the criminal indictment threat facing Powell "has reinforced worries that central bank independence is being undermined." Scroll down for more of today's news and outlook.
Mortgage Rate Trends: Past 90 Days
Purchase Rates
| Loan Type | Rate | APR | Daily Change | Monthly Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.09% | 6.12% | +0% | -0.2% |
| 15-Year Fixed | 5.26% | 5.31% | +0% | -0.15% |
| 30-Year Fixed FHA | 5.61% | 6.82% | +0% | -0.04% |
| 30-Year Fixed VA | 5.68% | 5.82% | +0% | -0.08% |
| 30-Year Fixed USDA | 5.61% | 5.76% | +0% | -0.09% |
| 30-Year Fixed Jumbo | 6.6% | 6.61% | +0% | +0.24% |
| 5/6 Year ARM | 6.07% | 6.11% | +0% | -0.04% |
Refinance Rates
| Loan Type | Rate | APR | Daily Change | Monthly Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.15% | 6.18% | +0% | -0.2% |
| 15-Year Fixed | 5.22% | 5.26% | +0% | -0.15% |
| 30-Year Fixed FHA | 5.56% | 6.77% | +0% | -0.05% |
| 30-Year Fixed VA | 5.77% | 5.9% | +0% | -0.01% |
| 5/6 Year ARM | 6.09% | 6.12% | +0% | -0.01% |
The bigger picture
Mortgage rates tumbled dramatically on Friday, falling to 6.09% from the 6.18% rate at Thursday's close for a 30-year fixed-rate mortgage, according to ICanBuy. The drop took that rate to a three-year low.
We warned you that morning that the jobs report might have a significant effect. But, actually, that report barely had any impact.
The movement was almost wholly down to an announcement on Thursday evening that Fannie Mae and Freddie Mac would be purchasing $200 billion in mortgage bonds. These bonds, known as mortgage-backed securities (MBSs), are by far the biggest determinator of mortgage rates. When MBS prices rise (as would normally happen with $200 billion of extra demand), those rates invariably fall. Read Mortgage Rates Hit 3-Year Low as Trump Touts Mortgage Bond Purchases for more information.
This week brings three economic reports that could accelerate
Friday's fall in mortgage rates or reverse it. And all three are due
tomorrow or on Wednesday.
So, movements in mortgage rates today will likely be continuing
reactions to Thursday's announcement about Fannie and Freddie, plus this
morning's breaking news.
What's coming up?
Although economic reports are usually the main drivers of changes to mortgage rates, they're not the only ones. The general mood in markets and economically consequential news can also affect those rates. News items concerning employment, inflation, tariffs and deficit funding are especially influential at the moment.
This week
As with all reports, it's the gap between what investors are expecting and what the actual figures show that moves markets and mortgage rates. Compared with forecasts, Friday's jobs report brought both good and bad news that more or less canceled each other out, making it a damp squib.
Typically, better-than-expected figures cause mortgage rates to rise, while worse-than-expected numbers send them lower.
This week's other potentially important reports are both scheduled for Wednesday. They're November's retail sales figures and the producer price index (PPI) for the same month. As always, we'll brief you more fully on all influential reports on the morning each is scheduled.
Mortgage rates today
There are no economic reports on today's MarketWatch economic calendar. But markets may still be volatile as they continue to digest the impact of Fannie and Freddie's bond purchases and respond to Powell's indictment.
