The Worst Week For Mortgage Rates – April 17, 2024

Video Transcript

Tough luck for April’s first-time home buyers. Mortgage markets are in a 5-day losing streak and this isn’t your ordinary couple of down days. This is one of the largest one-week deteriorations in the last 50 years.

Since last Wednesday, mortgage-backed bonds have given up 195 basis points which in mortgage rates is equivalent to about a half-point increase in rates. Last time we saw a half-point jump like this: Mid-2022, coming out of the pandemic. Before that: June 2013, the taper tantrum.

Before that: October 2008, right after the crash. These are historic comparisons and it almost feels out of place. It’s not like all that much is going on right now.

The events that are pushing rates up are simply inflation-related. Markets thought inflation was done. The Fed had said inflation was done.

Turns out, inflation may not be done. What we’re seeing now is an unwinding, a market looking for balance, and today’s mortgage rate shoppers are bearing the brunt. Subscribe to our main channel for more mortgage news.

I’m Dan with Homebuyer.com. Happy homebuying.