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“This was the worst week for mortgage rates in 3 years – and it may be just the beginning”

"This was the worst week for mortgage rates in 3 years – and it may be just the beginning"

Rates fell sharply on Wednesday and everyone breathed a sigh of relief and started locking like crazy.

But then rates shot up again yesterday and a friend of mine sent me this link to a short CNBC article with a title that I borrowed for the above subject line.

Here are the article’s key points:

  1. Rates are almost 3/8 higher today than where they were when they hit “bottom” on September 4th.
  2. The number of borrowers who could benefit from a refi fell from almost 12 million to 2 million.
  3. This week’s rate bump was the largest we’ve seen since the week after President’s Trump’s election.
  4. Some analysts think that our ten-month run of steadily lower rates may be over.
  5. When borrowers see rates falling many hold off on refinancing or even buying b/c think rates may fall even further.
  6. Nobody can time the market.

It is points #5 and #6 that are most important for purposes of this blog, and they are points I make all too often.

Rates could well fall again, but they are equally likely to shoot up again and nobody has a clue as to what will actually happen.

So, I am going to repeat Wednesday’s advice to every borrower: Get in while the gettin’ is good.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 310167