Here’s Austin loan officer John Schutze with his weekly update on the ups and downs of the mortgage market.
“Mortgage rates leaped higher this week!
On Wednesday, mortgage rates rose more than .5% in one day! The cause was the result of a confluence of factors, including:
- Rising oil prices and gas prices
- Optimistic predictions about the end of the recession
- Concerns over the U.S. total debt load
- Fears of inflation
In addition, momentum trading played a role.
As markets worsened, selling begat more selling, amplifying Wall Street’s total losses. As mortgage bond prices fell, mortgage rates went up. By a lot.
Rates generally take a breather after a big movement like this week. So far that’s been the case as we end the week. The damage is done. It’s probably a good time for those “fence sitters” to get up and make a move! “
John works at Bank of America and writes an Austin mortgage blog.