Mortgage Rates Highest in More than 2 Months


Mortgage rates moved higher today, bringing them to their worst levels since the morning of September 18th.  The average 30yr fixed rate for the most ideally qualified borrowers was already on the move up at the end of last week, but today’s weakness solidifies the move up from 4.375 to 4.5%.


Before September 18th, rates were higher still, in anticipation of the FOMC (the “Fed”) policy announcement that afternoon.  A clear majority of market participants expected the Fed to announce a reduction in asset purchases (QE).  When that didn’t happen, rates moved swiftly lower and have held in that range ever since.


Even with today’s losses, we’re still not back up to the pre-September FOMC levels (though we’re getting closer).  It’s an important consideration at the moment given that this week ends with the Employment Situation Report.  If any one report could be a lynchpin for Fed policy, this would be it, and the next FOMC Announcement is coming up just a week and a half later.


In other words, Treasuries and MBS (the “mortgage backed securities” that most directly affect rates) are once again getting in position for a potential change in Fed policy.  This greatly raises the stakes for economic data this week.  Rates can continue to move higher as long as the economic data stays strong


About mortgagelendingstatenisland

I am a mortgage banking veteran with over 15 years of experience at every level of the mortgage arena. I am known as the "closer" because of my troubleshooting skils and ability to explain in detail to my clients and business partners "What Makes A Mortgage Approvable".

Posted on December 3, 2013, in Uncategorized and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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