While the mainstream mortgage rate indices continue operating in the mid-to-upper 6% range, actual rates are moving higher into the 7% range by the time we account for the additional costs required to get the average lender into the high 6's.  In other words, a 30yr fixed rate in the 6's is most often seen with the addition of upfront costs to buy down the rate these days.  Because those upfront costs can vary from scenario to scenario, our index accounts for them in the rate itself, thus allowing us to track just one number that is always able to be compared to other points in the past. At the moment, there are only a few days in the recent past (May 25th and 26th) that have seen rates any higher than todays.  Before that, you'd have to go back at least another 2 months.  Even then, you wouldn't get to obviously higher rates until late 2022. Today's increase wasn't that big in and of itself.  It simply added on to a losing streak that began last Thursday after several economic reports suggested more resilience than expected.  In general, an unexpectedly resilient economy puts upward pressure on rates. Fears about "more of the same" could be behind some of today's weakness as the next two days bring several important economic reports.  Ultimately, inflation and the economy will determine when the tide turns for rising rate momentum. 
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July 5, 2023
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Mortgage Rate Watch
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