Mortgage Rates Snap Higher; Tax Law Unlikely to Impact Home Prices; Fannie/Freddie Changes

Mortgage Rates Snap Higher; Tax Law Unlikely to Impact Home Prices; Fannie/Freddie Changes

Mortgage rates snapped back toward recent highs today. Part of this has to do with how well rates have done over the past 3 weeks. Granted, rates haven't moved significantly lower over that time, but they've at least avoided moving significantly higher--something that couldn't be said for every other week in 2018. There are several big and intractable reasons for the general rise in rates, and none of them have changed. As such, investors in the bond market (which underlies rate movement) are understandably hesitant to make trades that push rates very much lower. They were already on the edge of their comfort zone when yesterday's tariff announcement forced rates even lower. With that line having been crossed, buyers disappeared (bond buying pushes rates lower) and seller took over on Friday