August 18th Mortgage Interest Rates Today with Freddie Mac Rate Update

Mortgage Rates Today: In this presentation, we’ll update you on home loan mortgage interest rates today. Whether you are looking to refinance your mortgage or purchase a home, we recommend going with a Mortgage Broker. You’ll get a lower rate, lower costs, and better customer service.

I’m eddie canal and i’m tom cannell welcome everyone this is the mortgage brothers podcast show and today is thursday august 18th and this is your interest rate update if you’re new to the channel be sure to subscribe comment and like we do this monday through friday and remember this is for informational purposes only this is not financial advice that’s right

We’re not your financial planners we are your mortgage brokers okay so update today 30-year fixed conventional loan 4.99 the 15-year 15-year fix 4.375 the 30-year fha 4.5 the 30-year va 4.5 we could have taken a picture from yesterday exact same across the board all these rates i think there was one of these that was a little bit different i think it was a third

Yeah it was one of these had up ticked up a little bit yeah all same rates these rates also come with no extra points no extra fees to get the 4.99 for example on a conventional loan this is the scenario we price it on for conventional here’s the fha scenario and here’s the va scenario remember these are real scenarios they’re very likely they’re not some you know

One percent chance that you’re gonna fall into this bucket like some of the you know coupons and discounts that you see out there all the loans do have standard closing costs but there’s nothing extra yeah i think about 80 of our customers have over 740. yeah um yeah we should show us there’s some research that we’ve done actually most consumers actually have good

Credit report scores whether maybe we go show that yeah mm-hmm i want to show you the whole idea of what is it as far as those points go we’re showing 4.99 that’s what we’re showing that’s what we can get in the market for that scenario freddie mac is is the agency it’s a it’s an agency that that buys the notes same with fannie mae now all you have to think

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Of is this they’re the they’re the agents they’re the they’re the bank behind the bank or they’re the agency behind the bank yeah and they’re basically buying these nodes at a discount so that interest rates are low enough for the american people that homes can continue to sell so freddie mac buys and holds more notes than all the bank i mean no the banks don’t

Really hold notes and they’re based on their survey which comes out once a week interest rates by that they’re seeing are 5.13 for a 30-year fix but banks are charging lenders are charging 0.8 of a point almost one percent almost one point we would call that like one point but there’s a point point eight and point eight in points equals thirty two hundred dollars in

Our scenario here so if you had a four hundred thousand dollar loan yeah so 28 in points would be 3 200 of extra fees so not only is the average um you know bank or the or the bank yeah the average of all the banks you know quoting higher rates than we are but they’re also having these points yes so we’re kind of a double whammy yep so you would probably get an

Interest rate quote if you were out there looking especially on purchases if you’re out there looking at a home it’s a home purchase you’re going to get higher rate quotes than most and you’re gonna probably be at 5.13 to five and a half and then you’re gonna have points yeah and if you’re already far enough along in the process you’re like a week away from closing

Don’t worry close on that home you just purchased hopefully you’ve got some instant equity and then we can simply refi you after you guys close and okay next we went over this yesterday it was amazing one day the the chan this is the fed rate probability that comes from the chicago mercantile exchange i’m not sure if anyone really likes looking at this chart i

Kind of like it you know we’ve been talking about it but i’m hoping that the audience makes you know likes it you know because there’s a lot here but just think about this way the next meeting is in net is next month there’s a 65 percent chance that they’re gonna the fed will raise the rate point a half a percent yesterday that was at 50 percent these were yeah

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Both 50. we were we talked about that you know we were asking how how quickly will these change they can change daily if not you know a couple times a day yeah so overnight traders have believed that we’re going to only have a 50 or half a percent rise which means they really do believe that fed’s not going to be as aggressive as they think mm-hmm why because they

Do think the economy is going to start to slow but they want it to slow they want that inflation number so i think if i’m reading this correct i mean some of what the feds are trying to do is working yeah yeah um and second november second i just if i did look up the midterm elections are november 8th so this is a week before basically there’s 85 percent chances

Based off today 85 chance the fed will rise or raise the um i should put raise there but raise the fed rate another quarter to a half percent okay and then december about 80 chance another quarter to half percent yeah so hopefully we start to see it tapering yeah you know as you go all the way out to february i don’t think we’ve seen a zero before in quite a

While so yeah so it’s very possible it’ll be a zero maybe maybe we’ll be done we sh you know we really do hope a lot of people are saying that we’ll be done once we hit three and a half percent basically there are analysts who say that we can’t if the fed rate goes above three and a half hmm nobody can pay the debt um corporations can’t believe the doubt the

Banks can’t pay the debt the uh our country can’t pay the debt so um again and you tom mentioned the good analogy is you know you tell your child when you’re trying to discipline them you give them a warning don’t do it or i’m gonna i’m gonna i’m gonna take the keys from the car yeah uh and then you count to four and then you say it again you’re going to count

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The three right yeah and you never right now the fed is talking they’re they’re basically warning everybody hey if you if you do this if the economy gets it overheats we’re going to do this but there i think what they’re doing is they’re trying to scare the economy so that the economy can just correct its actions yeah the businesses can so using the analogy that

That that you just said taking the car from the teenager would be pushing the uh the fed funds rate to four percent and what edda was saying was that there’s a report out there saying that we really can’t handle anything about three and a half and the fed knows that and and and the fed knows it and kind of like the parent it’s kind of you kind of know you can’t

Take the car from the kid you’re just really hoping that they don’t step over that that line so interesting you have a little bit of psychology going on here which i guess kind of makes sense yeah they know that if they speak a certain way the market’s going to react and that’s what they’re hoping for yeah and they’re and they’re getting it things are are slowing

The parent will talk tough and they’re hoping that the behavior will change yeah because who yeah that’s right because just like the parent the feds do not want to have to go through the pain yeah that it would it would give the economy in order to do what they really needed to do they just want it to magically happen like your kids you just want them to magically

Listen yes okay that’s today’s update we’ll be back tomorrow everybody make sure to subscribe comment and like all right thank you folks thank you everyone for watching our show today if you have questions be sure to email us at rates and be sure to take a look at all of our other videos on our channel

Transcribed from video
August 18th Mortgage Interest Rates Today with Freddie Mac Rate Update By The Mortgage Brothers Team