Home Loan Rates | Are They Really “That” High?

Mortgage Rates Face Jobs Data

Mortgage Rates Compared to Last Year

Mortgage Rates Compared to Last Year

Tomorrow’s “New Jobs” and “Unemployment Rate” data is a potential market mover.  If the numbers come in near 160k new jobs and 4.7% unemployment we should see the mortgage rate rally from week 1 in 2017 continue into next week.

Some have called the 9 week post-election rate increase the “Trump Tantrum” which reminds me of the “Taper Tantrum” 1 week rate jump in the summer of 2013.   Is a cost increase of only $31.06 per $100k mortgage from election week to now OR the cost increase of just $13.33 per $100k mortgage from a year ago to today a “tantrum?”

Are Mortgage Rates Really Much Higher?

Freddie Mac and “Tantrums”

The media sells news.  Everything for sale is not what it appears.  Today’s mortgage rates are not a far reach from where rates were just 1 year ago.
mortgage rates below provided by Freddie Mac, based on a 30 year fixed mortgage, primary residence, 740 credit score, 20% down single family residence purchase

Election Week 2016 to Today:

Jan 5th: 4.20% (+ .63%) ($489.02 per $100k)
Dec 29th: 4.32%
Dec 22nd: 4.30%
Dec 15th: 4.16%
Dec 8th: 4.13%
Dec 1st: 4.08%
Nov 23rd: 4.03%
Nov 17th: 3.94%
Nov 10th: 3.57% ($457.96 per $100k)

1 Year Ago to Today:

Jan 5th, 2017: 4.20% (+ .23%) ($489.02 per $100k)
Jan 7, 2016: 3.97% ($475.69 per $100k)

Rule of thumb for tomorrow – better economic news supports higher mortgage rates while worse economic news supports lower mortgage rates.

Rule of thumb for what to consider a “Tantrum” – not sure but saying “four point ….” instead of “three point …” can’t be it!

By Jeremy House

 

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Jeremy is the Founder of The HOUSE Team and a Sr. Loan Officer/Branch Manager with PrimeLending. Over the past several years he has ranked in the top 1% of all loan officers nationwide and one of the top 200 loan officers in America. In the mortgage industry, the devil is in the details. Jeremy prides himself on being a student and an expert when it comes to everything mortgage related.

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