by Calculated risk 5/19/2025 07:03:00 PM
From Matthew Graham on Mortgage News Daily: Before daytime improvements, the mortgage rate is 7% for a short period of time
Mortgage fees jumped sharply as financial markets responded to a downgrade in Moody’s credit rating in the remaining minutes of market/business day on Friday.
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Most mortgage lenders determine their rates for the day in a time frame between 9am and 10am. As this was one of the weakest moments for the bond market, mortgage rates were initially sharply high. The average lender has returned for the first time since April 11th, over 7%, and for the second time in three months.As soon as these fees were made public, the underlying market began to return in the opposite direction. Mortgage lenders prefer to set a rate only once a day, but will do daytime renewals when things change well enough. Today’s reversal was more than enough to encourage a repricing. The fixed rate for the average top tier, 30, has since been much higher than Friday, but much higher along the range last week. [30 year fixed 6.99%]
Emphasis added
Tuesday:
•No major economic releases are scheduled.
