Mortgage rates leaped to new 2-Yr highs today, after strong economic data increased the chances that tomorrow’s all-important jobs report would be similarly strong. The rate with the most efficient combination of upfront cost and monthly payment for ideal scenarios (best-execution) moved up to 4.875% for Conventional 30yr Fixed loans on average–roughly an entire eighth of a point in a single day. While some some lenders remain at 4.75%, others are closer to 5.0%–a rate that will be more prevalent if tomorrow’s data is strong.
In thinking about how much rates have moved so far this week, it’s important to note that the most widely used metric for changes in rates–Freddie Mac’s Primary Mortgage Market Survey–relies on data collected from Monday through Wednesday of any given week. Lenders who participate in the survey are emailed Monday and asked to respond by Wednesday. This can result in a delayed response in Freddie’s data vs reality.
This happened to horrible effect on June 20th, a day after the FOMC Announcement sent rates skyrocketing higher. Most survey responses would have been in before that data rocked markets, and as such, Freddie’s published 30yr fixed rate was roughly a full half point lower than consumers were being quoted just one day after it was released.
Read more by Matthew Graham here
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”