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Mortgage rates up with resolution of fiscal cliff

Written by Clay on . Posted in Rate Updates

fiscal cliff resolvedMortgage rates have jumped 0.250% the past 2 weeks! The 84 basis point drop in bond prices the 1st week of January when an agreement was reached on the “Fiscal Cliff” has been followed by another 60 point drop over the past couple of weeks. Is this a permanent change in rates or should we expect a bounce? It seems to me that the investors are working hard to find good news and not paying as much attention to negative factors. The all-important jobs report should be a market mover tomorrow. Regardless of how the market reacts on Friday, I do expect wholesale lenders to look closer at margins and perhaps mitigate some of the rate increases over the past few weeks. Most have geared up teams to handle increased volume and will want to make sure those folks are busy.

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