Mortgage Rates Surge to Recent Highs; Tax Bill Effect on Homebuying Demand; New Construction Remains Solid

Mortgage Rates Surge to Recent Highs; Tax Bill Effect on Homebuying Demand; New Construction Remains Solid

Mortgage rates surged higher today, ultimately making it back to levels not seen since late October in some cases (depending on the lender). Part of the reason rates were able to cover so much ground in a single day is that the recent range has been exceptionally narrow. In fact, it wouldn't be too surprising to see the same interest rate quoted today and yesterday with the difference being higher closing costs for today's quote. All that having been said, many borrowers will actually be looking at the next eighth of a percent (.125%) higher in rate. Given that the tax bill passed the House today (actually, it looks like it may have to go for a revote tomorrow, due to a technicality), it's easy to assume the move in rates is related. It's not. The move in rates is it's own animal, having to