The mortgage market is no stranger to excitement in 2022. Unfortunately, it hasn’t been the good kind of excitement. That’s especially true of the past few weeks as rates pushed back up to long term highs. After yesterday’s upside surprise in the Consumer Price Index (a key inflation report that frequently causes volatility in markets), rates surged up to match the highest levels in 14 years.
Lenders continue to offer rates in the low to mid 6% range. Many loans continue to require a historically high amount of upfront cost due to pricing constraints in the mortgage bond market (i.e. investors aren’t offering premiums to buy loans that run a high risk of being paid off the moment rates drop enough for a refi to make sense).
This is a graph from Mortgage News Daily (MND) showing 30-year fixed rates from three sources (MND, MBA, Freddie Mac) over the last 5 years.