Mortgage rates finished the week unchanged as the Federal Reserve held the fed funds rate steady. The monthly inflation reports were mostly in line with expectations and the Fed made no indication that it will deviate from current monetary policy any time soon. The Producer Price Index for November was slightly higher that expected, while year-over-year core PPI, excluding food and energy costs, was up only 0.5%. The Consumer Price Index remained at low levels with the core rate coming in flat for November. As expected, the Fed kept the benchmark lending rate between zero and 0.250%, and reminded us that inflation was not a concern in the short-term. The Fed did note some improvement in the job market since the last FOMC meeting, but they still intend on keeping interest rates “exceptionally low” for an “extended period”. Currently, the 30-Year Fixed sits at 4.625% (4.804% APR) and the 15-Year Fixed is at 4.125% (4.432% APR). There is a lot of economic news due to be released before the long holiday weekend, including New and Existing Home Sales, Consumer Sentiment, Durable Goods Orders and the final reading for 3rd quarter GDP.
Wishing everyone joy and happiness this holiday season!
Central Coast Lending, Inc.