Huge Reversal For Mortgage Rates. No Promises of Sustainability

Thursday- September 29, 2022 If you’re just getting caught up, mortgage rates broke above 7% on Wednesday for the first time since 2002.  Yesterday was an entirely different day.  In fact, rates dropped not only back below Wednesday’s levels, but all the way back to the end of last week (Thursday afternoon-ish, depending on the lender).  This wasn’t necessarily the case Wednesday morning, but almost every lender adjusted their rate offerings in the middle of the day–in many cases multiple times. Mortgage rates are based on bonds.  When bonds rally enough, mortgage lenders issue these “mid-day reprices.”   Why were bonds so happy?  Happy isn’t the right word for it.  “Relieved” would be more appropriate.  A fiscal policy announcement in the UK is at the heart of all of the drama over…
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