Mortgage Market Insider
Rates forge ahead
Rates surged again this Monday and are now at 52-week highs. The 30-year fixed rate mortgage hiked up 19 basis points to 6.47% while the 15-year mortgage moved nearly double this amount— a whopping 34 basis points, putting it at 5.78%.
current outlook:
Why are rates so high right now? The short answer is that bonds and stocks have been selling off. The long answer involves the Fed’s bond buying programs, which had been a major source of downward pressure on rates and which ended on September 15th. Rates are also high because they’ve already priced in today’s Fed meeting in which they anticipate a 75 or 100 basis point rate hike. To put this into perspective, a hike of this magnitude hasn’t been seen since 1994 and 1982 respectively. Additionally, the market will inevitably have a reaction to the updated dot plot, which shows where each Fed official believes the Federal Funds rate will fall over the next three years and in the longer run. In housing news, the best time to make a purchase is almost nigh. The last week in September is known to be the best statistical time in the entire year to buy a house; buyers stand to save $20,000 on their purchase. This is because home prices typically decline in the second half of the year, and buyer demand also softens as families settle in for the holidays.
recent MMI news
Borrowers face tightened standards
Rates were steadily moving lower until yesterday when they shot back up in response to a higher-than-expected CPI (consumer producer index). As it stands, the
Summertime rate sadness
Rates sailed into dangerous territory and are now just below their respective 52-week highs. The 30-year fixed rate mortgage jumped 30 basis points to 6.25%.
Housing projections over the next three months
Following a calm Friday, rates shot up at the beginning of the week. The 30-year fixed rate mortgage increased another 22 basis points to 5.95%.
Rate correction in August
In the days leading up to the highly anticipated Jackson Hole Symposium, the 30-year fixed rate mortgage shot up 44 basis points to 5.73%. The
Builders offering 5% discount on new homes
Rates are back down in light of last week’s inflation data which fell below expectations. The 30-year fixed rate mortgage fell 6 basis points to
Bonds lose ground (but could’ve lost more)
Rates moved back in the opposite direction after a robust job and wage growth report came out last Friday. The 30-year fixed rate mortgage is
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