Mortgage Rates Now Near 7.5% For No New Reason

Interest rates are based on trading levels in the bond market. Bond traders began their day looking at significantly weaker levels (i.e. higher yields/rates) versus last Friday, but for no apparent reason. Actually, it would be more fair to say "for no new reason." Reasons for the rising rate momentum are apparent and ongoing. Decades-high inflation required decades-high rates to fix. The higher rates are supposed to be damaging the economy more than they have. Until that damage shows up, rates have a green light to continue higher. As more and more market participants abandon their preconceived notions regarding an imminent rate reversal, the upward momentum takes on a certain glacial quality. In other words, it's self-sustaining, often resulting in days like today where rates look like they're acting on some obvious catalyst despite the absence of any such news. Mortgage rates were already new 7.4% by the end of last week and today's increases bring the average lender closer to 7.5%. This is the highest since late 2000. Lower rates are still available for certain scenarios and discount points, but many scenarios are also seeing higher rates.

August 21, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Now Near 7.5% For No New Reason Interest rates are based on trading levels in the bond market. Bond traders began their day looking at significantly weaker levels (i.e. higher yields/rates) versus last Friday, but for no apparent reason. Actually, it would be more fair ... (read more) MBS Commentary Another Day in The New, Higher Rate Reality Another Day in The New, Higher Rate Reality "Higher for longer," they said. And they weren't kidding. After the mini banking crisis in March, rate watchers were hopeful that this visible consequen... (read more) Rob Chrisman Broker Pricing, Non-QM, Lead sourcing, Tech Products; STRATMOR on Employee Culture; The Fed and Rates For those attending the Western Secondary, remember, it never rains in Southern California. Except for now. Here’s one person who won’t be seeing So Cal any time soon, and dare I say, every honest person in our biz is happy when this happens. Daniela... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.48% +0.11% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.48% +0.11 0.00 15 Yr. Fixed 6.88% +0.12 0.00 30 Yr. FHA 7.12% +0.09 0.00 30 Yr. Jumbo 7.40% +0.09 0.00 5/1 ARM 7.24% +0.06 0.00 30 Yr. VA 7.11% +0.06 0.00 Updates Daily - Last Update: 8/21 15 Yr. Fixed Rate 6.88% +0.12% Rate Change Points Freddie Mac 30 Yr. Fixed 7.09% +0.13 0.00 15 Yr. Fixed 6.46% +0.12 0.00 Updates Weekly - Last Update: 8/17 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.16% +0.07 0.68 15 Yr. Fixed 6.57% +0.06 0.94 30 Yr. Jumbo 7.11% +0.07 0.55 Updates Weekly - Last Update: 8/16 MBS / Treasuries UMBS 30YR 6.0 99.08 -0.34 Price / Yield Change MBS UMBS 6.0 99.08 -0.34 GNMA 6.0 99.25 -0.28 Pricing as of: 8/21 5:31PM EST 10 Year US Treasury 4.3420 +0.0910 Price / Yield Change US Treasury 2 YR Treasury 5.001 +0.058 5 YR Treasury 4.466 +0.082 7 YR Treasury 4.434 +0.092 10 YR Treasury 4.342 +0.091 30 YR Treasury 4.449 +0.072 Pricing as of: 8/21 5:31PM EST Latest Video Interest rates are keeping home sales down and driving renovation stocks: K... The Fed has underestimated the timeline needed to see effects of rate hikes... The Fed's path forward: What to expect from Jackson Hole Don't expect Fed Chair Powell to adjust the inflation target, says Mohamed ... Around the Web CNBC Mortgage rates hit their highest point since 2000 CNBC American workers are demanding almost $80,000 a year to take a new job Reuters TREASURIES-Yields hit decade highs as 'higher for longer' rates concerns take hold Marketwatch Treasury yields are surging as investors seek insight on a crucial monetary policy concept Eye on Housing Single-Family Home Size Moves Lower to More than a Decade Low Reuters Summer of angst as bond yields surge and global stocks wobble CNBC 10-year yield climbs as investors await Fed speaker comments, economic data Calculated Risk Blog 4th Look at Local Housing Markets in July Calculated Risk Blog Housing August 21st Weekly Update: Inventory increased 0.9% Week-over-week; Down 10.0% Year-over-year Reuters Fed done hiking; slim majority of economists say no rate cut through March: Reuters poll Calculated Risk Blog Lawler: Is The Natural Rate of Interest Back to Pre-Financial Crisis Levels? Eye on Housing Declines for Custom Home Building Calculated Risk Blog Q3 GDP Tracking: Moving Up

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