Rate Watch Report

Mortgage watch

Mortgage Rates are moving higher, but only a modest pace compared to Wednesday & Thursday  Over the past 3 days, the average rate quote for a top tier conventional 30yr fixed loan has risen by an eighth of a percent (.125%), much higher moves for high balance loans.  The last 3 days account for most of the move higher, making it one of only a handful of periods/days with as much upward movement in the past few years!

Is an eighth of a point a big deal?  Only you can answer that.  It comes out to about $7/month for every $100k in loan amount.  For some, it’s not a big deal, but for others it can make or break a transaction.  Either way, everyone can agree it would be a bigger deal if we were to see additional examples of similar spikes in the near future.

So will we?

That’s definitely possible, as this selling continues in bonds (that is why yields are rising, remember it’s an inverse relationship. Bonds have yet to find a bottom and I am not sure we find it soon. Why? Because when I look at the hedging contracts out there I can see just how bearish the sentiment is. Four times as many PUTS have been purchased than calls. Traders buy PUTS when they are betting the market will fall. We can also see that the Big Money players are still selling.

Because of this, we are recommending our clients LOCK as soon as escrow opens.

On a positive note, these rates are still AMAZINGLY low!


Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140

Apply: www.GoTeamMurphy.com

About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 46 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele and sons Matt and Jeff, as they continue to offer personal service with an emphasis on achieving his clients’ real estate goals.  This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 26 years.

As residents of Foothill Ranch since 1994, Tim and Michele are actively involved in the community by fundraising for Foothill Ranch Library, Make-a-Wish Foundation, Cancer Society, Homes for Habitat, Relay for Life, South County Outreach, and the local church and schools. Tim enjoys sponsoring community-wide garage sales, paper shredding and e-waste recycling event, an Easter egg hunt, & a Meet Santa Event.

Tim and Michele are dedicated to their family of four sons, daughter-in-laws, and grandchildren. As a family, they enjoy many outdoor activities which include camping, spearfishing, mountain climbing and exploring the miles of hiking and equestrian trails in Foothill Ranch and the Whiting Ranch Wilderness Park. Tim and his sons are also avid snowboarders and enjoy mountain biking and lobster diving. Family is a top priority in the Morissette household. They look forward to helping more families achieve their dreams of homeownership.