Mortgage Rates Monday, Aug. 28: Down at the Start of a Busy Week
Mortgage rates slid downward across the board, according to a NerdWallet survey of daily mortgage rates published by national lenders Monday morning.
Rates didn't move much last week, partly because there wasn't much economic news to react to. The economic calendar is more active this week, so there's more opportunity for mortgage rates to move up or down.
A big potential rate-mover comes Thursday, when the Commerce Department releases the core Personal Consumption Expenditures price index. In short, the core PCE price index is the Federal Reserve's favored measurement of inflation. The Fed would like to see this inflation rate at around 2%, plus or minus a couple of tenths of a percentage point. But it's been stuck below that mark for several years. Last month's reading was 1.5% inflation year-over-year.
Even though inflation is lower than the Fed wants it, the central bank is expected to keep raising short-term interest rates. It has raised the federal funds rate four times, a total of one percentage point, since late 2015. And it's about halfway done with its rate-raising campaign, the president of the San Francisco Fed told CNNMoney in an interview. "We do need to see some more rate increases over the next couple years to get us to this normal level," John Williams said in the interview. "We're probably about half the way there in terms of raising short-term interest rates."
The other big rate-mover comes with Friday's employment report for August. That report can move mortgage rates, too. If job creation is much stronger than expected, interest rates could rise. If it's a lot weaker than expected, rates could fall.
MORTGAGE RATES TODAY, Monday, AUG. 28:
(Change from 8/25)
30-year fixed : 3.99% APR ( -0.01 )
15-year fixed : 3.40% APR ( -0.03 )
5/1 ARM : 3.86% APR ( -0.04 )
NerdWallet daily mortgage rates are an average of the published annual percentage rate with the lowest points for each loan term offered by a sampling of major national lenders. APR quotes reflect an interest rate plus points, fees and other expenses, providing the most accurate view of the costs a borrower might pay.
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Holden Lewis is a writer at NerdWallet. Email: firstname.lastname@example.org. Twitter: @HoldenL.
The article Mortgage Rates Monday, Aug. 28: Down at the Start of a Busy Week originally appeared on NerdWallet.