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Tuesday, December 07, 2010

Mortgage Rates rise sharply

by Calculated Risk on 12/07/2010 08:27:00 PM

From "Soylent Green is People":

[I]t's been a complete bloodbath in the market for us. ... Three rate sheets for the worse, an average 4.75% 1.0 point loan today, well up from the October lows of 3.750%. Crushing to say the least.
From economist Tom Lawler:
Benchmark US interest rates are up sharply today in at times frantic trading in response to the tax package “deal” reached between the administration and Congressional Republican leaders. (While yesterday’s silly “60 Minutes” bond market rally lasted longer than an hour, it wasn’t by much!!!) The MBS market also got crushed today, and indicative 30-year conventional conforming fixed-rate quotes, which had moved lower following Friday’s employment report, jumped up sharply today, with most lenders showing something in the range of 4 ¾% and 1 point (for a 60-day lock).
This will impact refinance activity immediately, but might accelerate some purchase activity because of a fear of further rate hikes.