Tuesday, July 22, 2008

WSJ: Mortgage Rates Increase Sharply

by Calculated Risk on 7/22/2008 10:03:00 PM

UPDATE: from Vikas Bajaj at the NY Times: Woes Afflicting Mortgage Giants Raise Loan Rates

Ruth Simon and James Hagerty at the WSJ report: Mortgage Rates Near a Year High. According to the Journal - reporting data from HSH Associates - 30 year rates rose to an average of 6.71% last week, and jumbo rates have risen to an average 7.84%.

I usually track mortgage rates using Freddie Mac's weekly survey, and the MBA. The MBA reported for the week ending July 11th:

The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.22 percent from 6.43 percent
And Freddie Mac reported 30 year rates were at 6.26% for the week ending July 17th. So rates must have really surged last week ...

This will have a negative impact on home sales, and on homeowners trying to refinance.