CNBC is reporting that the rate on an average 30-fixed mortgage has hit 4% today against a backdrop of heavy selling in the U.S. bond market as investors divert funds to the rising stock market.
Many experts didn’t forecast a 4% rate until mid-2017.
“The situation on the ground is panicked. Damage control,” said Matthew Graham, chief operating officer of Mortgage News Daily. “People were trying to lock loans quickly last week and are now facing a tough choice to lock today or hope for a bounce. Many hoped for a bounce last week heading into the long weekend and we obviously didn’t get it.”
Higher rates are typically not good news for the housing market, although rates are still historically low.