Mortgage rates were crushed today, moving higher than any single-day since 2013. The 30-year fixed mortgage rate experienced a full eighth (.125) point hike. There have only been 14 days in the past five years that have had a spike of an eighth or higher, so it is worth mentioning.
An eighth of a point rise in the mortgage rate is nothing to lose sleep over. This change in rate comes out to about $17/month on a $250,000 loan.
So why the concern?
The highest point of volatility began today with the worst day for bonds since 2013. Now we will see the news on Friday’s employment data and how the market reacts. Also, we more than likely will see the Feds begin hiking rates. If not now, you can bet it’s going to happen sooner than later. Is today’s rise in rates just a bump in the road or is this a precursor to higher mortgage rates?
I would not be rolling the dice. If you are in the loan process and haven’t locked your rate, it’s not a bad idea to do that now rather than later.