July 28, 2022

Mortgage Interest Rates Dropped This Week! (Yes, July 29, 2022)

Mortgage rates dropped this week! It’s a Happy Friday indeed when we can say that mortgage rates are back down in the 4’s on both jumbo and conventional loans!

How is This Possible?

How is the possible after the Fed hiked rates 0.75%? This is because the Federal Reserve only controls short-term interest rates (think lines of credit, credit cards, etc). A 30yr mortgage is a long-term debt and is therefore not directly impacted by the Fed hike. The Fed is raising short-term rates to combat inflation. Mortgage rates have risen this year because of inflation. By raising the cost to borrow money (think spending on credit cards), consumers and businesses will spend less. With less money circulating in the economy, inflation will decrease. The Fed’s decision to raise rates 0.75% in the last two meetings shows that they’re serious about fighting inflation and mortgage rates are reacting positively to that!

Today’s Interest Rates at Mhm Lending

  • Conventional 30yr: 4.625% // 4.722% APR 
  • (Conventional loan of $640,000, 80% LTV, excellent credit)
  • Jumbo 30yr: 4.625% // 4.707% APR
  • (Jumbo loan of $1M, 80% LTV, excellent credit)

Key Takeaway

Key Takeaway: Most buyers assume that mortgage rates increased this week, so it is our responsibility to educate our clients on these changes! We believes with these low rates, less competition, and more inventory that this weekend could be one of the most buyer friendly weekends of the year.

Mhm Lending

Thank you to mhm lending for this great news! If you are wanting to talk to a mortgage professional, Johnny Kellogg at mhm lending is our guy. Give us a call or shoot us a message and we will get you in contact with him.

Work With Us

The David Bell Group is dedicated to helping you find your dream home and assisting with any selling needs you may have. Contact us today to start your home searching journey!