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Mortgage News Letter


Mortgage News Daily

Mortgage Rates Highest in Nearly a Month
Wed, 21 Oct 2020 20:49:49 GMT

Rates are appreciably higher than they were last week or indeed any time in past 4 weeks. That's surprising news to those laboring under misapprehensions created by widespread reports of "all-time low rates" from last week. As we discussed yesterday, those reports were based on weekly survey data from Freddie Mac and the MBA, and there are reasons that they don't accurately reflect the day-to-day rate offerings you're actually likely to encounter from the average mortgage lender. This is infinitely more true for refinances due to the new adverse market fee (which only affects refis). To clear up some confusion that seems rather persistent, the new fee for refis has a deadline that applies to mortgage lenders "delivering" or "securitizing" their loans by December 1st. Lenders only control when ...read more

Mortgage Rates Moving Higher
Tue, 20 Oct 2020 20:54:50 GMT

It began last week. It was subtle--so subtle as to pass largely unnoticed. But the gentle drift toward slightly higher rates has taken bigger steps so far this week. As of this afternoon, the average lender is quoting the highest rates since late September! That's quite a realization when juxtaposed with last week's (misleading) headlines about "all-time lows." If the highest rates in nearly a month sound scary, don't freak out just yet. During that time, rates have held inside one of their narrowest ranges ever. By the time we consider how low rates are in the bigger picture there's actually never been a comparable example of "this low for this long." The lift-off hasn't proven to be too alarming just yet either. Many lenders are still quoting the same note rates today versus their recent ...read more

Mortgage Rates Flat to Begin The Week--Still Not At All Time Lows
Mon, 19 Oct 2020 19:55:10 GMT

For some unknown reason, there were additional articles over the weekend touting " all-time low mortgage rates." Underpinning these alleged rates is primary data that was released on Wednesday and Thursday last week. In short, the two weekly survey-based mortgage rate indices agreed that best-case-scenario rates were at all-time lows. To be fair, they're not terribly far off base. "Best-case scenario" rates are indeed pretty close to all time lows. The methodology limitations of the surveys could easily explain how they each missed the actual all-time lows that occurred in early August and are thus seeing slightly lower rates now. But do keep in mind that a refinance transaction can no longer be viewed as a best-case scenario due to the new adverse market fee applied to all almost all refis ...read more

Low Rates Will Face More Volatility Risk in Coming Weeks
Fri, 16 Oct 2020 21:09:57 GMT

Yesterday, we discussed why rates are not actually at all-time lows. But rates are whatever they are. They're relation to previous lows doesn't really matter at the end of the day. Do you benefit from refinancing? Can you afford your new purchase payment? Great! Don't worry if the rate is technically not an all-time low. I'm just on a crusade for journalistic accuracy, shouting at my own little wall over here. More important than the outright level of interest rates is the risk of volatility on the horizon. With everything the economy and financial markets have been through in 2020, the past few months have been surprisingly calm in the bigger picture--especially for the bond market (which has a direct bearing on mortgage rates). But there are several reasons we should be prepared for more ...read more

No, Mortgage Rates Are NOT Actually At All-Time Lows
Thu, 15 Oct 2020 20:56:37 GMT

Many of today's mortgage-related headlines are touting "new all-time lows," but there are significant caveats. The biggest caveat would likely be the fact that the average 30yr fixed rate is actually nowhere near its previous all-time lows! So why are there so many headlines saying otherwise? Issue 1: Freddie Mac's Weekly Rate Survey Freddie conducts the longest-running weekly mortgage rate survey in the biz. If you're not worried about nitty gritty details or day to day movement, it's plenty accurate and consistent. That's why the industry and news media have grown to rely on it for a quick, rough take on mortgage rates every Thursday morning. The problem with Freddie's survey is that it's a quick rough take every Thursday morning. It doesn't go into nitty gritty detail--the kind that could ...read more