Fixed Mortgage Rates are even with yesterday.
In the recent weeks that have wrecked havoc on Mortgage rates, Mortgage Backed Bonds have lost over 550 basis points!!! This has caused rates to increase to levels that we were seeing back in October and November, basically wiping out all gains that we have seen in the past six months. It has been said time and time again that all this stimulus that the Government is using to boost our economy would cause concern for inflation but I don’t think anyone, including the Fed thought it would happen this fast.
With many potential homebuyers and refinancers shocked from these recent rate hikes, it will certainly put a damper in activity moving forward. Although rates aren’t as low as they have been the past 6 months, it will be important to realize that this is still a great time to purchase a home, or refinance if it makes sense. Hopefully buyers aren’t going to put off a purchase of a home, especially if it is their first time simply because of a 1% rate hike…maybe they will just need to find a slightly less expensive home.
Current Outlook: Cautiously floating this morning as mortgage backed bonds are starting to trade up over 40 basis points higher