Mortgage Rates Approaching 7% Again

There are some broad rate surveys/indices that show 30yr fixed mortgage rates under 6.5% or close to it, but it's a bit of a mystery as to how such a thing could be justified--even after accounting for the typical lag between weekly surveys and our daily records. Indeed, most of the past week saw the average top tier rate at 6.625% or higher for the average lender. And as of today, we're painfully close to 7.0% again. To be fair, we were already close to 7.0% on Friday. Most lenders didn't move much higher since then, and many lenders were already there. As always, keep in mind that we're talking about top tier scenarios with no additional upfront costs due to FICO/LTV. And just because it bears repeating in light of some of the atrocious journalism on the topic, keep in mind that the best loan pricing is still reserved for those with the highest credit scores (many news sites continue to get this wrong, sadly). What's behind the spike? In general, the market is coming to terms with the possibility that the Federal Reserve may not have been that off-base over the past few months as it has maintained the need to keep rates "higher for longer." Recent economic data has confirmed more economic resilience (and more inflation persistence) than initially expected after the Fed's last forecast update in March. The true trajectory of rates will depend on additional economic data, with the more important reports not coming out until the first 2 weeks of June.

May 22, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Approaching 7% Again There are some broad rate surveys/indices that show 30yr fixed mortgage rates under 6.5% or close to it, but it's a bit of a mystery as to how such a thing could be justified--even after accounting for the typical lag between weekly surveys and our d... (read more) MBS Commentary Why Are We Here And Where Are We Going? Why Are We Here And Where Are We Going? The bond market has entered a lull heading into Memorial Day weekend. There isn't much by way of hotly anticipated reports or events apart from the debt ceiling d... (read more) Rob Chrisman UW, Capital Markets, Training, Verification Tools; Webinars to Wrap up May; Chatter from NY If you’re staying here in Manhattan, space is at a premium. I don’t recall the last time my room had a bathroom where one could turn the shower on, flush the toilet, and brush their teeth in the sink, all for a nightly tariff that would more than cov... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.95% +0.05% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.95% +0.05 0.00 15 Yr. Fixed 6.25% 0.00 0.00 30 Yr. FHA 6.62% +0.07 0.00 30 Yr. Jumbo 6.57% +0.02 0.00 5/1 ARM 6.88% 0.00 0.00 30 Yr. VA 6.62% +0.10 0.00 Updates Daily - Last Update: 5/22 15 Yr. Fixed Rate 6.25% +0.00% Rate Change Points Freddie Mac 30 Yr. Fixed 6.39% +0.04 0.00 15 Yr. Fixed 5.75% 0.00 0.00 Updates Weekly - Last Update: 5/18 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.57% +0.09 0.61 15 Yr. Fixed 5.96% +0.05 0.68 30 Yr. Jumbo 6.46% +0.13 0.38 Updates Weekly - Last Update: 5/17 MBS / Treasuries UMBS 30YR 5.0 98.28 -0.17 Price / Yield Change MBS UMBS 5.0 98.28 -0.17 UMBS 5.5 99.83 -0.17 GNMA 5.0 98.58 -0.17 GNMA 5.5 99.81 -0.17 Pricing as of: 5/22 5:31PM EST 10 Year US Treasury 3.7190 +0.0370 Price / Yield Change US Treasury 2 YR Treasury 4.324 +0.045 5 YR Treasury 3.765 +0.026 7 YR Treasury 3.743 +0.024 10 YR Treasury 3.719 +0.037 30 YR Treasury 3.967 +0.032 Pricing as of: 5/22 5:31PM EST Latest Video Los Angeles office vacancy rate spikes amid commercial real estate market s... Bond market volatility will continue as Fed rate hike decision looms, says ... Employment is the key to Fed decisions now, says Wharton's Jeremy Siegel Most Fed officials think it's appropriate to take a pause, says Evercore IS... Around the Web Calculated Risk Blog Final Look at Local Housing Markets in April Eye on Housing New Single-Family Home Size Trending Lower CNBC Fed's Kashkari says a June pause on rates wouldn't indicate an end to hiking cycle Black Knight Why Home Prices Are High, Even With Falling Demand Calculated Risk Blog Housing May 22nd Weekly Update: Inventory Increased 0.9% Week-over-week CNBC Treasury yields tumble as investors weigh debt ceiling talks, Fed rate policy CNBC Fed Chair Powell says rates may not have to rise as much as expected to curb inflation Calculated Risk Blog Q2 GDP Tracking: Around 2% Eye on Housing Custom Home Building Contracts Calculated Risk Blog Similar Number of Housing Units started in Q1 as 'Built-for-Rent' as 'Built-for-Sale' CNBC 2-year Treasury yield falls as investors weigh Fed speaker comments, interest rate outlook CNBC Watch Fed Chairman Jerome Powell speak live on monetary policy Calculated Risk Blog Hotels: Occupancy Rate Down 2.0% Year-over-year

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