The Federal Open Market Committee (FOMC)chose to maintain the target range of federal fund rates at 1% to 1.25%.

Although we are still in a competitive market, we may finally see a decline in bidding wars.

For the first time in 7 weeks, the average 30-year fixed mortgage rates increased from an average of 3.78% to 3.83%.

Although rates have gone up, they’re still at a historic low. Freddie’s average rate was 8.1% in the year 2000.

This hike in mortgage rates is the 5th one since December of 2015.

CONVENTIONAL
30 Yr 3.875 to 4 APR 4.12
15 Yr 3.125 to 3.375 APR 3.425

ARMS
5 Yr 3.125 to 3.375 APR 3.61
7 Yr 3.25 to 3.75 APR 3.78

FHA/VA
30 Yr 3.5 APR 3.62
15 Yr 3.125 APR 3.12

CONVENTIONAL
30 Yr 3.875 to 4.125 APR 4.25
15 Yr 3.125 to 3.25 APR 3.3

ARMS
5 Yr 3.125 to 3.375 APR 3.61
7 Yr 3.25 to 3.75 APR 3.78

FHA/VA
30 Yr 3.5 APR 3.62
15 Yr 3.125 APR 3.23

Jobless claims hit a near 5-month low this week, supporting economic growth. Sustained labor market strength could contribute to higher rates.

The failure to pass a new health care reform bill has traders questioning possible tax cuts and infrastructure spending, and is supportive of lower mortgage rates.

Recent economic data has cast doubt on whether the Fed will raise policy rates again this year. Lack of inflation is supportive of lower mortgage rates.

Credit scores are rising, as the national average FICO score hit 700 for the first time in history. FICO’s VP for scores and analytics said a 700 score is considered “very good credit.” Better credit scores can get buyers more favorable mortgage terms.

The chief economist at property information firm CoreLogic says “the market continues to benefit from improved economic growth.” Their CEO adds, “the rebound in the U.S. housing market continues to gather steam.”

A national listing site found that the biggest homeowner regret was not choosing a larger home, while the biggest renter regret was continuing to rent instead of buying.

Job growth surged to 222,000 in June, and jobless claims were also down this week. Strong employment keeps the Fed on track to raise rates again this year.

The producer price index, a key gauge of inflation, was up 0.1% last month. Fed officials are closely watching inflation, which pressures mortgage rates higher.

In testimony to Congress this week, Fed Chair Janet Yellen shared that the Fed will gradually raise policy rates and reduce balance sheet holdings this year.

CONVENTIONAL
30 Yr 3.875 to 4.125 APR 4.26
15 Yr 3.25 to 3.5 APR 3.61

ARMS
5 Yr 3.125 to 3.375 APR 3.61
7 Yr 3.25 to 3.75 APR 3.78

FHA/VA
30 Yr 3.625 APR 3.71
15 Yr 3.25 APR 3.37

Four out of five major global central banks are talking about tightening policy, including raising rates. Market reaction to the news could pressure rates higher.

Comments this week by Fed members, including Fed Chair Janet Yellen, have investors speculating that another Fed rate increase is likely this year.

First quarter GDP growth was revised higher in May, signaling a growing economy. Higher consumer spending also provided an improved outlook.

CONVENTIONAL
30 Yr 3.875 to 4.125 APR 4.24
15 Yr 3.25 to 3.5 APR 3.56

ARMS
5 Yr 3.125 to 3.5 APR 3.61
7 Yr 3.25 to 3.75 APR 3.78

FHA/VA
30 Yr 3.5 APR 3.6
15 Yr 3 APR 3.13