Home Mortgage Rates Spike To The Upside

Posted By on December 16, 2010

The most recent look at the 30 Year Cash Fannie Mortgage showed a rise by 11 bps overnight, and by a stunning 1% in the last month. At 4.703% the prevailing wholesale mortgage rate is back to the highest it has been since May 2010. And while some have speculated that this inflection in rates would have been sufficient to get Americans to jump on the band wagon refinancing their mortgages by attempting to catch low rates while they can, the jump has been so powerful that the refi’s got passed by this time.  As a result, ceteris paribus, home prices may have to decline by about 10% to compensate for the pick up in rates in just the last month.

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