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There are some comprehensive rate surveys/indices that show 30 year fixed mortgage rates at or near 6.5%, but it’s a bit of a mystery how such a thing can be justified – for specific intervals between weekly surveys Even after accounting and our daily records.
Indeed, the average top-tier rate for the average lender was at or above 6.625% for most of last week. And as of today, we’re close to 7.0% again. To be fair, we were already close to 7.0% on Friday. Most lenders haven’t grown much since then, and many lenders were already there.
As always, keep in mind we’re talking about top-tier scenarios with no additional upfront costs due to FICO/LTV. And just because it’s worth repeating this in light of some atrocious journalism on the topic, keep in mind that the best loan prices are still reserved for those with the highest credit scores (sadly, many news sites get this wrong). .
What’s behind the spike? In general, the market is coming to terms with the possibility that the Federal Reserve may not be off-base over the past few months as it has maintained the need to keep rates “high for an extended period of time.” Recent economic data have confirmed greater economic resilience (and the persistence of higher inflation) than initially expected since the Fed’s last forecast update in March.
The actual trajectory of rates will depend on additional economic data, with more important reports not coming out until the first 2 weeks of June.
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