Highest Mortgage Rates in More Than a Month, But There Are Silver Linings

So far, 2024 has been distinctly different from the end of 2023. November and December saw rates move lower at one of the fastest paces in decades. In contrast, January has delivered a fairly consistent uptrend with the average lender now at the highest levels in more than a month. Frustratingly, widespread media coverage suggested rates fell to their lowest levels since May this week. Rest assured, this is NOT the case. It wasn't even the case last week, although that the claim would have been less frivolous last week. The source of the confusion is Freddie Mac's weekly survey which is the longest-running and most widely cited mortgage rate index overall. While there are a few reasons that it doesn't always line up perfectly with reality, the biggest issue is really the lag effect resulting from the survey's timing and methodology. Freddie takes an average of rate quotes on Thursday through Wednesday and reports that a day later. In other words, Thursday January 11th through Wednesday January 17th is this week's survey time frame. The 11th and 12th were the two best days of the past 2 weeks. They dragged the average down. Thursday and Friday of the current week have seen the highest rates in more than a month. They are NOT included in Freddie's survey. Here's a comparison between the Freddie survey rate and the more timely MND daily index. As always, the best way to use a chart like this is to compare the movement in the lines, because outright rates themselves can be affected by multiple factors.

January 19, 2024 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Highest Mortgage Rates in More Than a Month, But There Are Silver Linings So far, 2024 has been distinctly different from the end of 2023. November and December saw rates move lower at one of the fastest paces in decades. In contrast, January has delivered a fairly consistent uptrend with the average lender now at the high... (read more) MBS Commentary Negative Trend Intact For Now January has marked a modest but noticeable shift in bond market momentum and Friday provides the latest evidence. While we're content to view most of the recent weakness as a logical byproduct of decent economic data, there's certainly also an ... (read more) Rob Chrisman Broker, Credit Report Fee, Flip and Bridge Products; TPO News If you’re in Chicago, the newest attraction is “the rat hole.” Here in Denver, besides the cat I saw in the airport yesterday being walked on a leash, one attraction is the National Ice Core Lab, where, you guessed it, ice sample cores from all over ... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.92% +0.03% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.92% +0.03 0.00 15 Yr. Fixed 6.27% +0.10 0.00 30 Yr. FHA 6.15% +0.01 0.00 30 Yr. Jumbo 7.25% +0.14 0.00 5/1 ARM 6.30% +0.06 0.00 30 Yr. VA 6.17% +0.02 0.00 Updates Daily - Last Update: 1/19 15 Yr. Fixed Rate 6.27% +0.10% Rate Change Points Freddie Mac 30 Yr. Fixed 6.60% -0.06 0.00 15 Yr. Fixed 5.76% -0.11 0.00 Updates Weekly - Last Update: 1/18 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.75% -0.06 0.62 15 Yr. Fixed 6.24% -0.17 0.59 30 Yr. Jumbo 6.86% -0.12 0.42 Updates Weekly - Last Update: 1/17 MBS / Treasuries UMBS 30YR 5.5 99.73 +0.06 Price / Yield Change MBS UMBS 5.5 99.73 +0.06 UMBS 6.0 101.02 -0.05 GNMA 5.5 100.20 +0.02 GNMA 6.0 101.22 -0.03 Pricing as of: 1/19 5:31PM EST 10 Year US Treasury 4.1280 -0.0140 Price / Yield Change US Treasury 2 YR Treasury 4.387 +0.032 5 YR Treasury 4.051 +0.006 7 YR Treasury 4.099 -0.005 10 YR Treasury 4.128 -0.014 30 YR Treasury 4.336 -0.029 Pricing as of: 1/19 5:31PM EST Latest Video Chicago Fed President Goolsbee: A 'mistake' for the market to hinge on the ... Consumer sentiment jumps to 78.8, the best level since July '21 More sellers are entering the housing market, says HousingWire's Logan Moht... The bar for the Fed to make massive rate cuts is high, says Franklin Temple... Around the Web Marketwatch Traders give up on a March rate cut by Fed as bond-market inflation expectations move higher CNBC A stealth inflationary cost is hitting corporate profits and consumer wallets CNBC December home sales slump to close out worst year since 1995 CNBC Consumer sentiment surges while inflation outlook dips, University of Michigan survey shows Marketwatch Goolsbee says it's too soon to determine when Fed will cut interest rates Eye on Housing Pandemic Silver Lining: Young Adults Moving Out of Parental Homes Calculated Risk Blog Q4 GDP Tracking: Around 1.8% Marketwatch Inflation is 'far from dead': How one large asset manager is defying consensus Marketwatch Fed's Bostic makes case for first rate cut in July-September quarter Calculated Risk Blog Realtor.com Reports Active Inventory UP 7.9% YoY; New Listings up 7.0% YoY CNBC 10-year Treasury yield is little changed as investors digest the jobs data beat CNBC Fed's Raphael Bostic expects rate cuts to happen in the third quarter Eye on Housing Remodeling Market Sentiment Improves in Fourth Quarter

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