Mortgage Rates Surge Back Above 7%

Despite other indices showing the average 30yr fixed rate in the 6.7 range, the actual average (after accounting for points) is once again over 7%. We were already close as the index stood at 6.91 yesterday afternoon. That means lenders were offering rates in a range between 6.625 and 7.5%, give or take. Today's index leapt almost immediately to 7.04, meaning lenders are predominantly quoting 7% or 7.125%. At this point, it's good to note that a "point" (1% of the loan balance paid upfront for the purpose of dropping one's rate) goes a longer way than normal these days. At the moment, it would turn a 7.125 rate into a 6.625 rate. In other words: 7.125% with no points = 6.625% with 1 point. Whether or not this makes financial sense for anyone's individual scenario, budget, or outlook is a matter of legitimate debate, but points have been more prevalent than historically normal due to their outsized value. That's unfortunate with respect to other rate indices like Freddie Mac's, which no longer takes points into consideration. So what caused the spike? Economic data! We know the bond market has been hungry for evidence for or against economic resilience. Today's data suggested much more resilience than expected. Thus, bonds sold/deteriorated, and that leads to higher interest rates.

June 29, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Surge Back Above 7% Despite other indices showing the average 30yr fixed rate in the 6.7 range, the actual average (after accounting for points) is once again over 7%. We were already close as the index stood at 6.91 yesterday afternoon. That means lenders w... (read more) MBS Commentary A Resounding Reminder of Market's Thirst For Data Over Technicals Technical analysis provides an easy entry point for folks who want to talk about what the markets might do next. It is made all the more alluring due to its implicit claim to be better than a coin flip at predicting the future. Unfortunately, t... (read more) Rob Chrisman Hedging, Loan Production, Auditing, QC, Broker Marketing Products; Primer on the Cost to Hedge A “crisis” is a time of intense difficulty, trouble, or danger. Think calamity, catastrophe, or disaster. The word makes for attention-grabbing headlines, and a scan through the news shows a mental health crisis, child care crisis, migrant crisis, Ch... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.04% +0.13% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.04% +0.13 0.00 15 Yr. Fixed 6.45% +0.13 0.00 30 Yr. FHA 6.90% +0.27 0.00 30 Yr. Jumbo 6.90% +0.13 0.00 5/1 ARM 6.95% +0.05 0.00 30 Yr. VA 6.97% +0.34 0.00 Updates Daily - Last Update: 6/29 15 Yr. Fixed Rate 6.45% +0.13% Rate Change Points Freddie Mac 30 Yr. Fixed 6.71% +0.04 0.00 15 Yr. Fixed 6.06% +0.03 0.00 Updates Weekly - Last Update: 6/29 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.75% +0.02 0.64 15 Yr. Fixed 6.23% -0.03 0.69 30 Yr. Jumbo 6.91% +0.11 0.69 Updates Weekly - Last Update: 6/28 MBS / Treasuries UMBS 30YR 5.5 99.34 -0.63 Price / Yield Change MBS UMBS 5.5 99.34 -0.63 UMBS 6.0 100.69 -0.52 GNMA 5.5 99.36 -0.58 GNMA 6.0 100.45 -0.42 Pricing as of: 6/29 5:31PM EST 10 Year US Treasury 3.8420 +0.1280 Price / Yield Change US Treasury 2 YR Treasury 4.866 +0.154 5 YR Treasury 4.131 +0.162 7 YR Treasury 3.985 +0.137 10 YR Treasury 3.842 +0.128 30 YR Treasury 3.903 +0.091 Pricing as of: 6/29 5:31PM EST Latest Video Jobless claims indicate the market has continued strength, says Cerity Part... Pending home sales fell 2.7% in May First-quarter economic growth was actually 2%, up from 1.3% first reported ... Inflation remains the top worry for business leaders: CNBC survey Around the Web CNBC House hunting is no picnic. Guess what? It's about to get harder Calculated Risk Blog Weekly Initial Unemployment Claims Decrease to 239,000 CNBC Treasury yields climb as investors digest Fed Chair Powells interest rate comments Eye on Housing Property Tax Assessments and Revenue: Catching Up to Home Valuesand Quickly Federal Reserve Powell, Financial Stability and EconomicDevelopments Calculated Risk Blog Realtor.com Reports Weekly Active Inventory Down Slightly YoY; New Listings Down 29% YoY CNBC First quarter economic growth was actually 2%, up from 1.3% first reported in major GDP revision CNBC Powell say more 'restriction' is coming, including possibility of hikes at consecutive meetings Calculated Risk Blog CNBC: Fed Chair "Powell says more restriction is coming" CNBC Swedens krona hits new record low as central bank hikes and plays down currency intervention Calculated Risk Blog Inflation Adjusted House Prices 3.8% Below Peak; Price-to-rent index is 8.4% below recent peak FXStreet ECB Forum: Interest-rate hiking cycle isn't done yet, central bankers say CNBC Bank of England governor defies critics, says surprise rate hike was 'justified' to tame inflation

© 2023 Mortgage News Daily, LLC. | 19701 Bethel Church Rd. | Cornelius, NC 28031 Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc. This email was sent to: [email protected]. Go here to UNSUBSCRIBE from this email.