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BY MATTHEW GRAHAM
Mortgage Rates Hit Highest Levels In Months, More Volatility Ahead
Article link:
http://www.mortgagenewsdaily.com/consumer_rates/293075.aspx
Mortgage rates skyrocketed to their highest levels since August on Friday, both as a part of an ongoing move higher that began yesterday and more specifically in reaction to overnight events in Europe. Strong economic data in Germany sent interest rates initially higher overnight, but the bigger surge followed an ECB announcement detailing the 278 of 523 European banks that had already begun paying back 3-year loans made by the ECB in late 2011. MBS (the mortgage-backed securities that most directly influence rates) opened in much weaker territory and continued to sell-off throughout the day.
When MBS “sell-off,” prices are falling, meaning investors are paying less for mortgages. This causes closing costs, rates, or both to move higher. Depending on the lender and the particulars of the scenario, many borrowers will be looking at actual adjustments higher in RATE today, whereas most days simply see fluctuations in COST. Best-Execution for 30yr Fixed, Conventional loans is in transit between 3.5% and 3.625% at the moment, after being closer to 3.375% to begin the week. We haven’t seen 3.625% Best-Ex since QE3.
(Read More:What is A Best-Execution Mortgage Rate?)
Mortgage Rates Hit Highest Levels In Months, More Volatility Ahead
SOURCE:
Matthew Graham
Rates Strategist, Author, Mortgage News Daily / MBS Live!
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