|Mortgage Rates Appreciably Higher
June 30, 2017
Mortgage rates moved appreciably higher from Tuesday through Friday. In terms of upward movement, this has been the worst week for mortgage rates since early March, 2017. Most borrowers are now seeing rates that are a full eighth of a point higher than Monday morning’s levels. While that’s not even remotely close to the damage done during election week last year, an eighth of a point in 4 days is definitely on the abrupt side of historical averages.
Whereas lenders had been quoting conventional 30yr fixed rates in a range between 3.875% and 4.0% on Monday morning (on top tier scenarios), that range is now up to 4.0-4.125%.
Just as we respected the previous trend toward lower rates until it was broken, so too should this new trend toward higher rates be respected until broken. That means erring on the side of locking vs floating, and simply understanding that rates could continue higher depending on next week’s data and events.
–Matthew Graham, Chief of Operations, Mortgage News Daily
30 Year Fixed Rate Mortgage
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage
Friday, June 23, 2017 : 3.98% (+0.00%)
Weeks like this are the reason that some mortgage rate analysis is only done once a week. There haven’t been any significant developments in financial markets–at least not as far as bonds (which dictate rates) have been concerned. And there certainly hasn’t been any significant movement in mortgage rates themselves. In fact, with the exception of a modest dip last Wednesday, mortgage rates have been essentially flat for the entire month of June.
More detail: “Rates Cap Impressively Sideways Week Near Long-Term Lows”
Monday, June 26, 2017 : 3.97% (-0.01%)
Mortgage rates were steady to slightly lower today, depending on the lender. Underlying financial markets continue moving in a narrow range–something that’s not uncommon for the first few weeks of the summer. It’s that market movement that can result in mortgage lenders issuing mid-day reprices. The more volatile and the bigger the moves, the more likely lenders are to reprice. Today saw zero reprices.
More detail: “Rates Still Flat at 8-Month Lows”
Tuesday, June 27, 2017 : 4.00% (+0.03%)
Mortgage rates saw their biggest bounce higher in more than a week today as domestic bond markets (which dictate rates) followed a much bigger move in European bond markets. The European move can be traced to comments from European Central Bank President Mario Draghi depending on the lender. In a nutshell, his comments sounded like the Fed’s comments in the early days of the “taper tantrum” in the US (a big jump in rates that occurred when the Fed signaled its intention to buy fewer bonds).
More detail: “Mortgage Rates Bounce Higher”
Wednesday, June 28, 2017 : 4.02% (+0.02%)
Mortgage rates moved moderately higher again today, as investors continued digesting the possibility of a “taper tantrum” in Europe. The US version of the taper tantrum occurred in 2013 when the Fed began signaling its intention to buy fewer bonds. Fed bond buying was a key motivation for the all-time low rates seen in 2012.
More detail: “Mortgage Rates Highest in More Than 2 Weeks”
Thursday, June 29, 2017 : 4.06% (+0.04%)
Mortgage rates are higher again today, with the average lender now back to levels not seen since May 16th, 2017. Unless you’ve been following every little day-to-day change in rates, the apparent drama over the past few days is laughable. In the worst cases, some borrowers are now seeing rate quotes that are an eighth of percentage point higher than those seen on Monday morning. This comes out to $14/month for every $200k financed, but it can be more than a thousand dollars in terms of upfront costs on the same loan amount.
More detail: “Mortgage Rates Highest in More Than a Month”
Friday, June 30, 2017 : 4.07% (+0.01%)
Mortgage rates moved higher for a 4th straight day to end the month of June. In terms of upward movement, this has been the worst week for mortgage rates since early March, 2017. Most borrowers are now seeing rates that are a full eighth of a point higher than Monday morning’s levels. While that’s not even remotely close to the damage done during election week last year, an eighth of a point in 4 days is definitely on the abrupt side of historical averages.
More detail: “Worst Week For Mortgage Rates Since March”