10
May

Why Did Mortgage Rates Spike Quickly To One-Month Highs?

Posted To: Mortgage Rate Watch

Mortgage rates rocketed higher precipitously today, taking them to their highest levels since April 2nd. The move was all the more confounding as it happened on a day with no significant headlines or data releases–at least not the caliber of information that normally motivates such violent swings. When the dust settled, borrowing costs at the 3.5% ‘ best-execution ‘ were up anywhere from 0.4 to 1.2% depending on the scenario (this is equivalent to $400-$1200 in closing costs or lender credit for every $100k financed). It was also enough of a move to bring 3.625% back into picture and as a viable best-execution contender. The differences between those two rates are minimal in terms of efficiency, and in most cases, the choice amounts to a trade off between up front cost and monthly payment…(read more)

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