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A few important mortgage rates have ticked up in the wake of last week’s 75 basis point rate hike by the Fed. As interest rates surge, it’s getting more expensive to buy a house.
Washington State mortgage rates are at 5.31% for conforming 30-year mortgages, 4.39% for 15-year mortgages, and 5.51% for 5/1 ARMs. For jumbo loans, the numbers in the state are 5.46% for 30-year mortgages, 4.57% for 15-year mortgages, and 4.16% for 5/1 ARMs.
Mortgage rates In Oregon for conforming loan rates are 5.58% for 30-year mortgages, 4.67% for 15-year fixed-rate mortgages, and 5.83% for 5/1 ARMs. For jumbo loans, the numbers are 4.62% for 30-year mortgages, 4.36% for 15-year fixed-rate mortgages, and 4.15% for 5/1 ARMs.
Mortgage rates in Idaho for conforming loans for 30-year fixed-rate mortgages are 4.92%, 4.26% for 15-year mortgages, and 4.93% for 5/1 ARMs, while for jumbo loans, the numbers for each loan type are 5.66%, 4.47%, and 4.44%, respectively.
Mortgage Rates for Colorado for conforming loans for 30-year fixed-rate mortgages are 5.38%, 4.35% for 15-year mortgages, and 4.38% for 5/1 ARMs. For jumbo loans, the numbers for each loan type are 5.57%, 4.66%, and 4.36%, respectively.
The Federal Reserve has directed four rate hikes this year alone, and is signaling to expect three more before the year is out. Rock bottom rates cause home prices to skyrocket, and now inflation is a runaway train. The Fed hopes repeated hikes will exert pressure and help slow inflation, but experts disagree on how well this tact will work.
The hope is that sky-high US inflation may finally be approaching a peak as global economic growth sputters and the prices of oil and other commodities begin to fall sharply.
While the Fed is betting that a substantial decline in price pressures can help stabilize inflation without much damage done to the economy or the robust labor market, some analysts disagree. They are warning that inflation could prove sticky, and a significant economic contraction and large job losses will be required to bring it down to a reasonable level.
Worst case scenario is that the U.S. proves unable to get out of the excess inflation situation without a recession. Former Treasury Secretary Summers has gone on record saying that the country should anticipate something in the range of a couple of years with unemployment in the 6% or above range.
Data released mid-July by the National Association of Realtors (NAR) shows that the pace of pending sales has slowed for five consecutive months. Rising rates have driven away many potential buyers. Falling contract signings imply that multiple offers will be replaced by normalized market conditions, but the cessation of bidding wars likely won’t resolve the affordability issue.
The average rate for the benchmark 30-year fixed mortgage is 5.65 percent, down 10 basis points from a week ago. A month ago, the average rate on a 30-year fixed mortgage was higher, at 5.83 percent. At the current average rate, homebuyers will pay a combined $576.60 per month in principal and interest for every $100k they borrow.
Initial claims for unemployment insurance totaled 260,000 last week, This is near the highest level since November. The total for the week ending July 30 was in line with the Dow Jones estimate; however, it did reflect a gain of 6,000 from the previous week’s downwardly revised level.
The jobless claims number came in a day before the Bureau of Labor Statistics released its much anticipated nonfarm payrolls report for July. Total nonfarm payroll employment rose by 528,000 in July, larger than the average monthly gain over the prior 4 months (+388,000).
Job growth was widespread in July, and total nonfarm employment has increased by 22.0 million since reaching a low in April 2020, reaching pre-pandemic level. Private-sector employment is 629,000 higher than in February 2020, although several sectors have yet to recover, and government employment is still 597,000 lower than its pre-pandemic level.
Overall, the U.S. economy added only 258,000 positions in the month, compared with the initial June estimate of 372,000, making it the lowest total since December 2020.
The preliminary University of Michigan consumer sentiment index shows a modest improvement at 51.5 after 50.0 in June. This is above the consensus expectation in an Econoday survey of 50.0. The index for consumer confidence shows consumers are more positive about current conditions, with that component up to 57.1 in July after 53.8 in June.
Loan limits have increased for 2022 due to rising home prices throughout 2021. Each county in every state has set its own loan limit. That said, for most counties, the new conforming loan limit is $647,200 for 2022. FHA loan limits are $420,680 for most counties in 2022, though they can be much higher for more expensive counties.
Visit our 2022 conforming loan limit pages for Washington State, Oregon, Idaho, and Colorado.
For FHA loan limits for 2022, visit our pages for Washington State, Idaho, Colorado, and Oregon.
Check out our mortgage loan limit tool for conventional, FHA, and VA loans.
Do you have questions about rates this week and home loans? Or are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Among our programs includes the Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Contact us today with any questions you have about mortgages.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.