Mortgage rates continued higher today, further extending the push into fresh 15-month highs confirmed on Friday. The secondary mortgage market didn’t lose any ground by the end of the session, but volatility trading conditions during the day, along with other factors, kept lenders more defensive (in that rates are higher than they would be if markets were FLAT at current levels).
The weakness wasn’t enough to change the Conventional 30yr Fixed best-execution rate of 4.125% (with no points), but it should be noted that there is a wider than normal discrepancy between lenders in terms of how rate sheets have changed from one day to the next.
Just as the pendulum pushed far to the positive side of the rate range in April, the opposite swing occurred in May (now the worst single month for rates on record since 2008).
Rates going up should slow price increases. Question is will it stall prices?