Mortgage Rates were flat all last week, before getting destroyed on Friday. We clocked a sufficient rise to bump most borrowers up an eighth in rate, or significantly increase closing costs. The most prevalent rate quote for the best-qualified borrowers ends the current week moving up from 3.5 to 3.625% compared to last Friday when it rose from 3.375 to 3.5%. Lower rates were more damaged than higher rates (i.e. costs rose much quicker for 3.25% than they did at 3.625%)
Here’s How it Happened
5 weeks ago today, a much-weaker-than-expected Jobs report began a streak of prosperity for mortgage rates that took them well into 2013 lows. The streak ended last Friday, but wasn’t truly obliterated until today. We’re by no means back at the highs of 2013, but have been decidedly kicked out of the low half of 2013’s range. Part of the abruptness of today’s move could be in anticipation for Monday’s relatively important Retail Sales data. If that’s the case, a weaker-than-expected reading could help us more than a stronger reading hurts us (but it would still probably hurt).