Article Summary
Mortgage rates have been on a steady rise, with a brief spike over 7% in early April and now returning to the same level in May. This increase is due to almost daily rate increases, despite a lack of negative news. The rise in mortgage rates is affecting the bond market and could face additional pressure with important economic reports tomorrow.
What This Means for You
- Be prepared for higher mortgage rates when purchasing or refinancing a home.
- Consider locking in your mortgage rate as soon as possible to avoid further increases.
- Stay informed about the economic reports and news that could affect mortgage rates.
- Consider working with a financial advisor or mortgage professional to make informed decisions about your home financing options.
Original Post
In early April, amid the most volatile portion of the market’s reaction to the tariff announcement, mortgage rates were officially over 7% for a single day. By the middle of the following week, they were well on their way lower, ultimately ending the month just over 6.8%.
Since then, it’s been tough sledding for bonds and the rate market. Almost every day in the month of May has been a bad one. Even if the size of the rate increases have been reasonably small, they’re starting to add up.
Now today, the average lender is back on the doorstep of 7% for top tier conventional 30yr fixed mortgage rates. A second wave of weakness in the bond market this afternoon is resulting in many lenders announcing mid-day increases. With that, today’s index ended up at 6.99%–all this despite an absence of any standout individual motivations in today’s news.
Tomorrow brings a slew of important economic reports. If they come in stronger than expected, rates could face additional upward pressure. If they’re weaker, markets may dismiss them as stale data that was overly influenced by tariff-related uncertainty that has since improved.
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