This Was the Worst Week for Mortgage Rates in 3 Years… And it may be just the beginning…..

  • The average rate on the 30-year fixed is now 20 basis points higher than it was on Monday and 36 basis points higher than its last low on Sept. 4, according to Mortgage News Daily. That is the biggest short-term jump since the week following the election of President Donald Trump.
  • When rates dipped to their recent low, the number of borrowers with good credit scores and at least 20% equity in their homes who could save on a refinance surged to the largest on record, 11.7 million, according to Black Knight. That has now dropped by about 2 million.
  • “The big risk here is that the overall rate rally — the one that began in November 2018 — has run its course,” said Matthew Graham, chief operating officer at Mortgage News Daily.

The average rate on the 30-year fixed is now 20 basis points higher than it was on Monday and 36 basis points higher than its last low on Sept. 4, according to Mortgage News Daily.

That is the biggest short-term jump since the week following the election of President Donald Trump.

That is the bad news for borrowers. The good news is that rates are still incredibly low, and in the weeks before this turnaround, rates had fallen to the lowest level in three years.

“These sorts of bad performances are most often seen in the wake of stellar performances,” said Matthew Graham, chief operating officer of Mortgage News Daily. “August was the best month for mortgage rates, and 2019 has been the best year since 2011. And that’s precisely why this terrible week is possible: It’s largely a technical correction to the feverish strength in August.”

Analysts now wonder if this is a short-term correction from those recent lows or a new shift toward rising rates.

www.cnbc.com/2019/09/13/mortgage-rates-had-worst-week-in-3-years.html

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