Rates increased more than 10 basis points in one day and have sustained these levels ever since. The 30-year fixed rate mortgage is up 19 basis points at 3.27% while the 15-year fixed rate mortgage is up 18 basis points at 2.65%.
Bonds suffered on Wednesday after the Consumer Price Index revealed the largest uptick in prices in over 30 years. Rates followed suit, and matters only got worse when later that day 30-year Treasury auctions saw lower demand than expected. In other news, purchase applications increased 6% in October, particularly for houses that are still under construction. By the MBA’s estimates, this means new home sales experienced its biggest uptick since January 2021. Also interesting to note is loan sizes have also seen growth with the average loan size for new homes at over $412,000, a new record.