June 30, 2017
Mortgage rates moved higher for a 4th straight day to end the month of June. In terms of upward movement, this has been the worst week for mortgage rates since early March, 2017. Most borrowers are now seeing rates that are a full eighth of a point higher than Monday morning’s levels. While that’s not even remotely close to the damage done during election week last year, an eighth of a point in 4 days is definitely on the abrupt side of historical averages.
Whereas 3.875% had been widely available on Monday morning, the most prevalently-quoted conventional 30yr fixed rate is now up to 4.0% for top tier scenarios, and 4.125% is rapidly gaining market share.
Whereas the lock/float outlook had been calm and steady heading into this week, it quickly turned defensive as losses mounted. There are multiple justifications for the weakness ranging from European Central Bank “taper talk” to an overabundance of trading positions in favor of lower rates earlier in the week (which makes rates susceptible to the sort of correction we’re seeing now). Assume rates can continue higher until we see a definitive ceiling take shape. The earliest that could happen would be the end of next week. The last corrective uptrend in rates lasted 3.5 weeks.
Today’s Most Prevalent Rates
|30 Yr FRM||4.07%||+0.01|
|15 Yr FRM||3.32%||+0.01|
|FHA 30 Year Fixed||3.75%||+0.00|
|Jumbo 30 Year Fixed||4.33%||+0.02|