Mortgage Rates Spike A Full 1% Higher
Conforming 30-year mortgage rates spiked higher from the mid 3% to the mid 4% range during the bond market sell-off in the second quarter. BCA Research, who provided this chart, write that the spike is probably overdone and to expect rates to slowly subside again over the next month or two.
However, unless deflation fears resurface, I believe the bond market may have finally put in its low and that mortgage rates are unlikely to decline to those historic levels again. For those who may have been procrastinating about a refinance and as a result missed their opportunity, I would not hesitate should rates dip below 4% again.
Tags: bonds, interest rates