From Mortgage News Daily:
Mortgage rates leaped to new 2-Yr highs today, after strong economic data increased the chances that tomorrow’s all-important jobs report would be similarly strong. The rate with the most efficient combination of upfront cost and monthly payment for ideal scenarios (best-execution) moved up to 4.875% for Conventional 30yr Fixed loans on average–roughly an entire eighth of a point in a single day. While some some lenders remain at 4.75%, others are closer to 5.0%–a rate that will be more prevalent if tomorrow’s data is strong.
In thinking about how much rates have moved so far this week, it’s important to note that the most widely used metric for changes in rates–Freddie Mac’s Primary Mortgage Market Survey–relies on data collected from Monday through Wednesday of any given week. Lenders who participate in the survey are emailed Monday and asked to respond by Wednesday. This can result in a delayed response in Freddie’s data vs reality.
Unfortunately, rates are very capable of going even higher–something we warned about in no unspecific terms yesterday. At this point in the day, there’s little that can be done to lock in a rate before tomorrow’s excessively important jobs data arrives. In that sense, it “is what it is,” but for the sake of mental preparation, rates can still go higher if the data is strong, and the movement can still be big. If we happen to be benefiting from weaker-than-expected data tomorrow, we’ll cross that bridge if we come to it.