Rates are holding steady with the 30-year fixed rate mortgage one basis point higher at 5.72% and the 15-year mortgage still at 4.97%.
While rates are calm for now, this may lead to more volatility in the future. Tomorrow will bring a policy announcement from the European Central Bank whose currency is currently at a 1:1 ratio with the dollar for the first time since 2002. On the table is their first rate hike in over 10 years. Also significant for bonds is next week’s Fed meeting. While some were anticipating as much as a 100 basis point hike, the consensus has since moved back down to 75 basis points after the Consumer Sentiment Report showed improvement in July. In housing news, trends are changing from single-family houses to multi-family dwellings. The number of two-to-four family buildings starts experienced a 30% annual increase to 8,800. Meanwhile, single family starts were just 0.2% higher from where they were in 2021.