WASHINGTON–Rates on the 30-year mortgage saw one of their biggest short-term jumps in several years last week.
The average on the 30-year by week’s end was 20 basis points higher than the beginning of the week, and 36 basis points higher than it was on Sept. 4, according to data compiled by Mortgage News Daily.
When rates dipped to their recent low, the number of borrowers with good credit scores and at least 20% equity in their homes who could save on a refinance surged to the largest on record, 11.7 million, according to Black Knight. That has now dropped by about two-million.
Analysts told CNBC the risk now is that the overall rate rally that began in November 2018 has “run its course.”
All-Time Lows?
A Mortgage News Daily analyst added that if the market "can match 2011's performance, there's a chance rates will move to new all-time lows by the end of the year.” But that would require "some legitimate deterioration in the global growth outlook,” CNBC reported.
The mortgage analysts reminded that rates loosely follow the yield on the 10-year Treasury, and while Federal Reserve decisions can affect bond yields, mortgage rates are not necessarily tied to Fed rate cuts or increases.
Mortgage applications to refinance a home loan were essentially flat last week, despite the low rates, according to the Mortgage Bankers Association.