Mortgage Rates Rise to 1-Month Highs
Mortgage rates continued moving higher at a fairly quick pace today. Some borrowers may now start to see rate quotes moving up an eighth of a point. This is significant because most of the recent movement in the rate market has only affected the closing cost side of the equation. This can be thought of as a fine-tuning adjustment whereas actual changes in rate are a bigger deal. For instance, closing costs change daily, and sometimes multiple times during the day.
The interest rate part of rate quotes generally hasn’t changed since early June for most borrowers. That means 4.125% has been the most prevalently-quoted rate for top-tier borrowers during that time. During the weaker moments, 4.25% has occasionally been a close second, but today’s weakness brings it to roughly equal footing with 4.125%. Any rise in rates tomorrow would tip the scales in its favor.
So obviously we need to know what rates are going to do tomorrow! Unfortunately, there’s never any way to be sure. What we do know is that bond markets are currently anxious about next week’s Fed announcement. That happens on Wednesday, so rates are operating at a disadvantage until then. Keep in mind though, that there are always multiple factors in play when it comes to market movement. There is also very likely a limit on how much rates will rise between now and next Wednesday. The takeaway is that we could see a day or two of recovery between now and then, but it’s probably not worth the risk to try to time that correctly.
Article Written by MATTHEW GRAHAM
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