Mortgage Rates Officially Hit New Multi-Decade Highs

The average lender was already very close to multi-decade highs for 30yr fixed mortgage rates last Thursday afternoon, but a modest recovery on Friday meant that there was a chance we could have avoided printing today's headline this week. Unfortunately, the bond market started the day in rough shape and continued to lose ground throughout. At the time that most mortgage lenders released today's initial rate offerings, last Thursday was still worse. It wasn't until several lenders released negative/upward revisions to rate sheets that we officially crossed above the multidecade ceiling. For the average lender, a top tier 30yr fixed rate is now over 7.5% for the first time in at least 22 years. The average borrower (not "top tier") is seeing rates that are even higher. This assumes an adjustment for discount points. Many loans are being quoted with points currently, and in those cases, the note rate would be a bit lower. Frustratingly, there were no compelling new motivations for the bond market weakness. Negative momentum has been more of a snowball than a calculated decision over the past few business days. It may be hard for rates to muster much of a counterattack without a meaningful, negative shift in economic data.

September 25, 2023 Download our Mobile App: Download our Mobile App: Mortgage Rate Watch Mortgage Rates Officially Hit New Multi-Decade Highs The average lender was already very close to multi-decade highs for 30yr fixed mortgage rates last Thursday afternoon, but a modest recovery on Friday meant that there was a chance we could have avoided printing today's headline this week. Unfo... (read more) MBS Commentary Sell Now and Wait For Something to Convince You to Buy Sell Now and Wait For Something to Convince You to Buy Bonds began the week with another move to long-term yield highs. There was a wave of selling in the overnight session led by Europe and another whe... (read more) Rob Chrisman Borrower Engagement, Analytics, Internal Audit Tools; CRA News; STRATMOR on the Cost of Indecisive Leadership Are you gradually eating dinner earlier? Join the trend. Want to know another trend that isn’t so benign? Along the lines of the STRATMOR piece below, I received this email over the weekend. “Rob, I’m a processor at a lender who was doing about $80 m... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.51% +0.12% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.51% +0.12 0.00 15 Yr. Fixed 6.80% +0.09 0.00 30 Yr. FHA 6.94% +0.12 0.00 30 Yr. Jumbo 7.50% +0.08 0.00 5/1 ARM 7.11% -0.02 0.00 30 Yr. VA 6.96% +0.11 0.00 Updates Daily - Last Update: 9/25 15 Yr. Fixed Rate 6.80% +0.09% Rate Change Points Freddie Mac 30 Yr. Fixed 7.19% +0.01 0.00 15 Yr. Fixed 6.54% +0.03 0.00 Updates Weekly - Last Update: 9/21 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.31% +0.04 0.72 15 Yr. Fixed 6.62% -0.10 1.08 30 Yr. Jumbo 7.32% +0.07 0.80 Updates Weekly - Last Update: 9/20 MBS / Treasuries UMBS 30YR 6.0 98.86 -0.48 Price / Yield Change MBS UMBS 6.0 98.86 -0.48 GNMA 6.0 99.19 -0.45 Pricing as of: 9/25 5:31PM EST 10 Year US Treasury 4.5420 +0.1060 Price / Yield Change US Treasury 2 YR Treasury 5.127 +0.015 5 YR Treasury 4.616 +0.050 7 YR Treasury 4.609 +0.081 10 YR Treasury 4.542 +0.106 30 YR Treasury 4.665 +0.136 Pricing as of: 9/25 5:31PM EST Latest Video Expect rates to stay higher for longer, says Hightower's Stephanie Link Chicago Fed Pres. Austan Goolsbee: We ought to have 100% commitment to get ... Government shutdown looms as deadline to avert crisis nears Home prices strong despite high rates due to low for-sale supply Around the Web Reuters Moody's warns US government shutdown would be 'credit negative' cnn Government shutdown would leave the Fed flying blind Calculated Risk Blog Update on Four High Frequency Indicators Calculated Risk Blog Final Look at Local Housing Markets in August Eye on Housing New Homes Same Size but Higher Priced if Age-Restricted CNBC 10-year Treasury rises as investors weigh interest rate outlook Calculated Risk Blog Housing September 25th Weekly Update: Inventory increased 1.8% Week-over-week; Down 5.2% Year-over-year CNBC China property stocks tumble as Evergrande drops 25% on debt restructuring roadblock Marketwatch Senior Fed officials say more interest-rate hikes still on the table Calculated Risk Blog Black Knight: Mortgage Delinquency Rate Decreased Slightly in August CNBC Could the United Auto Workers strike affect car prices? 'Inevitably yes,' expert says CNBC UAW strikes could make 2023 the biggest year for labor activity in nearly four decades CNBC European markets set to start the week in negative territory

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