Article Courtesy of Movement Mortgage
Melissa Messick, Senior Loan Officer
According to the Mortgage Bankers Association, the average rate on 30-year mortgage loans is now 3.23%—up from 3.08% the week prior and the biggest week-over-week jump in nearly a full year.
For a full picture, check out yesterday’s Black Knight Daily Market Briefing.
Yesterday’s Rise & Shred featured a picture that read: “I don’t really understand how bond markets affect mortgage rates… but at this point, I’m too afraid to ask.” LOL!
We asked Pat Stone the CEO of Williston Financial Group for an explanation, and for sure, he had one!
“The jump in rates is a direct reaction to the sudden rise in the 10yr T-bill, as mortgage rates historically run 1.5 to 2% above the 10yr treasury,” Stone said. “The 10yr treasury has gone up as more money has moved to the 2 yr treasury as a result of investor concern over potential inflation and the size of the pending stimulus bill.”
And how about future behavior?
“Rates will probably level off, maybe decline a little, then gradually rise over the next two years,” Stone explained. “These rates are historically very attractive, even with the recent increases. Buyers should let their desire for home ownership, and affordability, be the governing factors. Timing the bond market is always difficult.”
Melissa Messick| SENIOR LOAN OFFICER
NMLS 97916
Office (980) 777-1042
Mobile (704) 905-4009
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