THE BASIS POINT

Mortgage Rate Reckoning Draws Closer

Rates have been crazy low since pandemic lockdowns began in Spring 2020, but a change could be coming soon. Matt Graham at Mortgage News Daily has a good rundown of how 4 main factors — COVID cases, Fed mortgage bond buying, fiscal policy, and resulting Treasury supply — will bring lots of rate swings in the near future.

With a combination of rate volatility and most top banks and economists estimating higher rates next year, it’s time to refi if you haven’t yet.

And if you’re a homebuyer, you should make sure your loan pre-approval can withstand higher rates — because you can’t lock a rate while you’re home shopping. You have to wait until you’re actually in contract to buy a home.

Comment below or hit me directly with questions.

Rates are dictated by the bond market and bonds are flashing a warning sign about volatility on the horizon. In other words, rates look like they’re ready to make a bigger move in the near future, for better or worse.

Here’s a briefing…

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Mortgage Rate Reckoning Draws Closer

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