From Matthew Graham at Mortgage News Daily: Worst 2 Days For Rates Since June
Mortgage rates continued higher at a reasonably abrupt pace today as last week's themes have been completely reversed. What themes are those? Generally speaking, markets were undergoing a risk-aversion trade given the rising geopolitical tension surrounding North Korea and the economic uncertainty associated with back-to-back hurricanes. ...Wednesday:
In the bigger picture, the damage is still far from severe. The best 30yr fixed scenarios are still under 4% for many lenders. But the past 2 days have constituted the most abrupt move higher in rates since at least late June, 2017. [3.875% fixed on top tier scenarios].
• At 7:00 AM ET, The Mortgage Bankers Association (MBA) will release the results for the mortgage purchase applications index.
• At 8:30 AM, The Producer Price Index for August from the BLS. The consensus is a 0.3% increase in PPI, and a 0.2% increase in core PPI.