Mortgage interest rates have jumped, responding as weekly unemployment claims neared a five-year low and the S&P 500 hit its highest point since December 2007. The strength of the market has pushed money out of bonds and into stocks, something that correlates to upward pressure on mortgage rates.
Of the conforming products, the 30-year fixed jumped 7/8 of a point in cost, the 15-year rose 5/8 of a point, and the 30-year high balance rate rose 6/8 of a point.
Central Coast Lending owner Daniel Podesto weighed in on the price change.
“This is a pretty big move for interest rates. It happened after the jobs report last week showed continuing strength, and also in anticipation of the unemployment number to be released later this week.”
The employment numbers for January will be released on Friday, February 1.
The immediate future of mortgage rates, will depend somewhat on the strength of this report. According to Podesto, “If there is not a significant drop in the Unemployment Rate, I would expect rates to move back down.”
With the adjustments, we are publishing the 30-year fixed at 3.250 percent (3.361 percent APR) and the 15-year fixed at 2.500 percent (3.685 percent APR). To see all loan programs on our 10-program rate tracker, see HERE.