Good Morning,
After yesterday’s Fed statement we are seeing mortgage interest rates increasing yet again today. It is an example of what goes down must go up. The inflationary concern is the primary reason for this. The bond market becomes less desirable, so investors dump them.
Here’s the inside Dripp…
Lenders began increasing mortgage rates relatively early yesterday even though the bond market wasn’t really moving. Why? Because, many times lenders anticipate what will happen and gradually adjust rates accordingly (they usually do this when rates are going up). We mentioned on Monday’s post that the Fed could not ignore the inflationary concern and that rates will increase this week (read post). Since there is no relevant news coming out today, it seems the bond market and mortgage interest rates will be increasing again as a sort lingering from yesterday’s activity. The 10-year bond yield is currently up to 4.0520. You can follow the 10-year bond yield yourself here.
Simply Put: Rates seem to be increasing again due to yesterday’s Fed statement. The inflationary concerns were brought up as we suspected, which hurt the bond market and as a result mortgage interest rates increased again today. There is no relevant news to report today other than investors are continuing to dump bonds. If you are hoping to close on a refinance or purchase within the next month we suggest that you lock-in your interest rates.
At 4pm be sure to catch “The Last Dripp” for the post-game wrap-up of today’s market events.
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