Mortgage Rates Jump Back Above 7%

Last Thursday and Friday offered some hope that the persistent move to higher rates was finally leveling off. It wasn't necessarily a rational hope, but if nothing else, it was "nice" to see the average 30yr fixed move back below 7%. Even then, we cautioned against viewing the recovery as indicative of ongoing success. Now today, we see why. Bonds (which dictate rates) have moved swiftly back into the weaker territory that precipitated the move over 7% in mortgage rates. As such, it's no surprise to see the average lender easily back into the 7s. For context, rates were as high as 7.5% in April and 8.0% at their long-term peak roughly a year ago. As for motivations, the market continues to work through election-related volatility. That involves a complex set of considerations. Some of them have to do with actual expectations for changes in fiscal policy in the coming years. Some of the considerations are as simple as traders going through the process of exiting (and re-setting) trading positions heading into the election. Motivations aside, it continues to be the case that interest rates would need to see significant weakness in economic data and a stronger move toward lower inflation in order for any real progress. Tomorrow morning brings the first of the week's big data points in the form of the Consumer Price Index (CPI)--an inflation report with a solid track record of inspiring reactions in rates.

November 12, 2024 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Jump Back Above 7% Last Thursday and Friday offered some hope that the persistent move to higher rates was finally leveling off. It wasn't necessarily a rational hope, but if nothing else, it was "nice" to see the average 30yr fixed move back below 7%. Even... (read more) MBS Commentary Two Ways to Look At This Morning's Sell-Off In the run up to the election, we offered constant reminders that a 10bp move in Treasuries wasn't really a big deal, and that such volatility could be expected well into November. That's the first way to view the overnight weakness. In f... (read more) Rob Chrisman Non-QM, Shared Appreciation, Closed Second, AVM, SOC Compliance Tools; Webinars and Training What would lenders do without telephones and phone calls? In 1947 area codes were created by AT&T. Metropolitan areas were given low numbers so that people would spend less time dialing them. Think New York, Chicago, San Francisco (and all of Cen... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.02% +0.10% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.02% +0.10 0.00 15 Yr. Fixed 6.39% +0.02 0.00 30 Yr. FHA 6.40% +0.10 0.00 30 Yr. Jumbo 7.20% +0.05 0.00 7/6 SOFR ARM 6.98% +0.06 0.00 30 Yr. VA 6.43% +0.11 0.00 Updates Daily - Last Update: 11/12 15 Yr. Fixed Rate 6.39% +0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 6.79% +0.07 0.00 15 Yr. Fixed 6.00% +0.01 0.00 Updates Weekly - Last Update: 11/7 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.73% +0.21 0.69 15 Yr. Fixed 6.27% +0.29 0.77 30 Yr. Jumbo 6.77% +0.04 0.49 Updates Weekly - Last Update: 10/30 MBS / Treasuries UMBS 30YR 5.5 98.94 -0.57 Price / Yield Change MBS UMBS 5.5 98.94 -0.57 UMBS 6.0 100.53 -0.42 GNMA 5.5 99.76 -0.26 GNMA 6.0 100.88 -0.12 Pricing as of: 11/12 5:31PM EST 10 Year US Treasury 4.4246 +0.1184 Price / Yield Change US Treasury 2 YR Treasury 4.339 +0.083 5 YR Treasury 4.311 +0.120 7 YR Treasury 4.376 +0.125 10 YR Treasury 4.425 +0.118 30 YR Treasury 4.566 +0.095 Pricing as of: 11/12 5:31PM EST Latest Video Goldman Sachs' Robert Kaplan: Independent Fed is critical & Powell should b... Fed's Kashkari: The Fed will not model Trump policies effect on economy unt... NY Fed: Inflation expectations decline slightly Fed's Barkin: Economy and policy are in a good place Around the Web Eye on Housing U.S. Consumer Debt Rises to $5.1 Trillion in the Third Quarter Marketwatch Sticky inflation might make it more tricky for Fed rate cuts, CPI could show cnbc Fed’s Barkin: Economy and policy are in a good place CNBC U.S. Treasury yields move higher as traders digest Trump win, await key data Calculated Risk Blog Heavy Truck Sales Decreased in 14% YoY in October Marketwatch Fed's Barkin says economy looks 'pretty good,' but labor market bears watching Calculated Risk Blog 2nd Look at Local Housing Markets in October; First Year-over-year Sales Gain Since August 2021 Redfin Redfin Reports Rents Flat Nationally in October, But Rising in East Coast and Midwest Metros Calculated Risk Blog Fed Q3 SLOOS Survey: Banks reported Mostly Tighter Standards and Weaker Demand for All Loan Types Marketwatch Americans the most optimistic about the economy since 2021, consumer sentiment shows CNBC Powell and the Fed won't able to avoid talking about Trump forever Calculated Risk Blog Hotels: Occupancy Rate Increased 1.9% Year-over-year Calculated Risk Blog Q4 GDP Tracking: Mid 2% Range

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