May 19, 2016

Mortgage rates bounced back today, to some extent, after rising at the fastest pace in more than 3 months yesterday.  Most of yesterday's damage remains, however, and most lenders are still quoting conventional 30yr fixed rates that are an eighth of a point (.125%) higher than those seen on Tuesday.  

This flies completely in the face of this week's Freddie Mac rate survey, which noted very little change in last week's "3-year lows."  True, rates were near 3-year lows last week and earlier this week, but that changed abruptly yesterday.  At least half of the change occurred after the Fed's 2pm release of its "Minutes" (from the late April Fed meeting).  Freddie Mac is essentially done counting survey responses by then, so all of the dramatic movement happened just late enough to miss being included in this week's survey.  

Bottom line: borrowers should be aware that rates are definitely no longer at 3-year lows.  

As to the outlook, we should all be aware that days like today can often follow days like yesterday.  This little bounce back is "nice," but it's more of an epilogue to an ominous story--the kind of story that could have a sequel.  In other words, don't let your guard down just yet.  We still haven't seen enough of a bounce back to to rule out more volatility in the near term.






Now is the time to buy!!!!
Mike Hall
Vice President / Mortgage Loan Officer
NMLS #493635

Off. (850) 650-9868 / Cell (850) 502-6634
Fax (850) 622-2995
16045 Emerald Coast Pkwy
Destin, FL 32541

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