Clients always ask us what mortgage interest rates are doing because it effects home purchase affordability. In an effort to provide them with the most accurate information and leading insight into the lending side of things, we have published iMortgage’s “Weekly Interest Rate Update”.
Weekly Interest Rate Update from Direct Lender iMortgage
Last Week: Mortgage rates were back to their old ways this week, moving noticeably higher after a nice 4-day streak of improvement ended on Monday. Tuesday’s losses were moderate, but Wednesday’s were severe, especially after the release of “Minutes” from the most recent FOMC Meeting. Thursday and Friday provided an opportunity for rates to level off, but we didn’t see much improvement. Conforming rates moved from 4.25% to as high as 4.50% for some lenders. With the benefit of an additional jobs report (much stronger) and more importantly with last weeks FOMC Minutes, the reality is starting to sink in for market participants, and it’s very much in line with our previous suggestion that the Fed is attempting to engineer a controlled sell-off in bond markets. This is consistent with our assertion that rates will be moving up into the new year.
This Week: The coming week may be something of an interlude as it’s not likely to see any excessive movement ahead of the extended Thanksgiving weekend. Bond markets will be open for a half day on Friday, but trading will be inconsequential. After that, the first week of December will be massively important for the interest rate outlook as there’s plenty of economic data right from the outset and the biggest data of all with Friday’s Employment Situation Report. The tenor of that jobs report may well inform the Fed’s decision to taper or not to taper 2 weeks later. Most market participants will draw their conclusion at the time of the jobs data, however, so the movement in rates could be extreme.
For more information about iMortgage’s loan products and the Ryan Grant Team, contact:
Matthew Miede,
Loan Consultant
NMLS ID 470783
949 939 3095
matt.miede@imortgage.com