Mortgage rates are coming off a rough week—the roughest, in fact since June 2020 by some measures. That’s the last time rates rose this quickly for market-driven reasons. There were a few instances of bigger moves in Aug/Sep as the new refinance fee was announced, delayed, and ultimately implemented. Either way, things aren’t great right now, relatively speaking.
The “relative” qualification is important considering this abrupt move higher has yet to threaten to take the average top tier 30yr fixed quote above 3%–far from it, in fact. Most lenders can still offer 2.875% or better on refis and 2.625% or better on purchases. This assumes an ideal scenario with 20%+ equity, strong credit, etc.
If this drama were to conclude right now, it wouldn’t be that big of a deal in the bigger picture. The concern, however, is that it coincides with a potentially legitimate inflection point rates. Those concerns were fueled first and foremost by the changing of the guard in Washington with strong supporting roles being played by vaccine optimism, deceleration in new COVID cases, and slightly tougher talk from the Federal Reserve. Qualitatively, it feels a bit early for “the big turn” in mortgage rate momentum for a variety of reasons, but it’s a threat that should be taken seriously until we see clear signs of a correction.
Contact Traci for More info on Mortgages
Information courtesy of Traci Waller of Advance Financial Group. This is for informational purposes only and should not be relied on by you. Rose and Womble Realty Company is not a mortgage lender. Contact Advance Financial Group directly to learn more about it’s mortgage products and your eligibility for such products. NMLS# 512138 Equal Housing Opportunity Information is subject to change without notice. This is not an offer for extension of credit or a commitment to loan.