Another 9 Month High For Mortgage Rates.
Mortgage rates moved higher Friday, bringing them up to yet another 9-month high as underlying bond markets ended the week in roughly the same shape as the week before. The mortgage bond market has been volatile over the past several days. That volatility makes it more expensive for lenders to guarantee any given rate, thus accounting for the new highs.
Unfortunately, this trend won't necessarily stop simply because things have "gotten bad." While it's true that the economic effects of higher and higher rates will eventually have a self-righting effect, that could take months to play out. While this doesn't necessarily mean that rates will continue a linear trend higher in the coming months, it does mean the current trend is not our friend, and that it would take some huge changes in bond market trading levels before it made sense to lower our defenses.
Courtesy of Rick Lombardo 310.435.7439, Rick.Lombardo@grarate.com, VP of Mortgage Lending at Guaranteed Rate.
#JeffreyShore #JeffreyShore.com #Sothebys #SothebysInternationalRealty #SIRcleTheGlobe #SothebysHomes #SothebysRealty #Mortgage #MortgageRates #30YearMortgage #LuxuryRealEstate #GuaranteedRate