Rates Resume Uptrend; Price Gains Staying Above 6% Annually; Strong Purchase Apps

Mortgage rates moved higher for the 5th time in the past 6 business days. The past 2 days have combined to bring rates a full .125% higher. That's the increment by which rates are most commonly divided (i.e. 4.0, 4.125%, 4.25%, etc.). Under normal circumstances rates might move that much over 2 weeks as opposed to 2 days. In fact, it happened twice in this most recent cycle (Jan 18/19, and Jan 24/25). The only time we see rates moving any faster is during major blowouts like the weeks following the election or the 2013 taper tantrum. The average lender is once-again quoting 4.25% on top tier conventional 30yr fixed scenarios. This isn't the first time we've seen 4.25% this year, but closing costs are slightly higher today. That means effective rates are at 2017 highs. Several lenders are already

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/25/2608

Existing Home Inventory Hits Record Low; Mortgage Rates Higher as Volatility Continues

Mortgage rates have been volatile recently, with 3 out of the past 5 business days seeing much-bigger-than-average moves. After improving nicely yesterday, rates rose quickly today by nearly the same amount. Relative to the recent landscape, this leaves us in the same territory as Thursday the 19th, on average. Throughout this volatile stretch, top tier 30yr fixed rates have averaged 4.125% during better moments and 4.25% on the bad days. The latter is slightly more prevalent today, but 4.125% is still out there. A mere eighth of a percentage point might not sound like much. It may not even BE much if considered in terms of the monthly payment change (about $14/mo on a 200k loan). But for borrowers looking to move down an eighth from today's quotes, it would cost more than $1000 on that same

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/24/2605

FHA Premium Cut Officially Reversed; Rates Stay High; Appraisal Fails; Housing Will Survive

As was being widely rumored yesterday, the newly installed Trump Administration has indefinitely suspended a scheduled reduction in the annual premium for Federal Housing Administration (FHA) insurance. A 25-basis point reduction in that premium was announced by then Housing and Urban Development (HUD) Secretary Julian Castro on January 9, scheduled to go into effect on January 27. Mortgagee Letter 2017-07 was issued about an hour after Donald Trump took the oath of office as President, counteracting the earlier Mortgagee Letter 2017-01. The new letter says "FHA will issue a subsequent Mortgagee Letter at a later date should this policy change." The Mortgage Bankers Association (MBA) reacted immediately to the shift. David H. Stevens, President and CEO, issued the following statement on behalf

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/20/2598

Rates Back Near 2-Month Lows; Fed's Dudley Wants You to Refi

Mortgage rates moved lower today , generally recovering the losses seen last Friday. This brings many lenders back in line with the lowest levels since November 17th, although last Wednesday (Jan 11) was slightly better on average. There hasn't been enough volatility to unseat 4.125% as the most prevalent 30yr fixed "note rate" on top tier scenarios. As such, today's improvement is limited to "effective rates" (which take closing costs into consideration). Heading into the 3-day weekend last week, we discussed the risk that the recent trend toward lower mortgage rates may have run its course, but that we'd need to wait until today to confirm. Today's improvements keep hope alive. That's no guarantee that rates will move lower, but at the very least it leaves borrowers with more options . On

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http://www.mortgagenewsdaily.com/reports/newsletter/2017/1/17/2592

Rates Slightly Lower to End 2016; United Shore Settlement

Mortgage rates moved lower for a 3rd consecutive day to end 2016, bringing them to the lowest levels in more than 3 weeks for many lenders. December 8th was the last time rates were lower. As of yesterday, 4.25% regained the status of the "most prevalent" conventional 30yr fixed quote on top tier scenarios. Quite a few lenders remain at 4.375% and a scant few are down to 4.125%. While this is all good news in the context of the past few weeks, 2016 nonetheless ends with one of the worst 2-month losing streaks in the history of mortgage rates. Specifically, the 5 weeks following the election were the worst 5 weeks on record, going back to the Spring of 1987. For anyone considering locking or floating into the 3-day weekend (markets and mortgage lenders are closed on Monday, by the way), it's

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http://www.mortgagenewsdaily.com/reports/newsletter/2016/12/30/2566

Most Markets Back to Historical Norms; Rates Set to End Year With Glimmer of Hope; PHH Servicing Sale

Mortgage rates moved lower today , somewhat significantly, depending on the lender. In many cases, quotes are an eighth of a point lower compared to Tuesday morning. Some lenders made the move yesterday. For others, today did the trick. In both cases, the "effective rate" (a hypothetical rate that accounts for lender-imposed closing costs) fell at its best pace in weeks. Today's quotes are the best since December 12th on average. 4.25% is now the most prevalent conventional 30yr fixed quote on top tier scenarios, although 4.375% remains fairly common. While I would love to tell you that this is a sign of a big shift back in a friendly direction, the gains are largely a result of the year-end bond trading environment. It's not the same bond market that's normally pulling the levers behind the

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http://www.mortgagenewsdaily.com/reports/newsletter/2016/12/29/2564

Rates Already Near 4.5%; Builder Confidence Soars; Definitive Analysis on "Death of a Trend"

Don't believe anything you read about mortgage rates today... well, except this . In fact, you're welcome to believe anything you read as long as it acknowledges the fact that rates have risen nearly a quarter of a point from last week, pushing them well into the highest levels in more than 2 years . The average top tier conventional 30yr fixed rate is quickly approaching 4.5%. Nearly every lender that was at 4.125% last week is now at 4.375%. Lenders who were at 4.25% last week are mostly up to 4.5%. The overall spike in rates since the election is now on par with the 2013 taper tantrum. You'll hear time and again "don't worry... rates are historically low..." and my personal favorite "for every .125% in rate, the payment only rises $7 per $100k borrowed." All of that is true, except perhaps

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http://www.mortgagenewsdaily.com/reports/newsletter/2016/12/15/2542