Largest Upward Rate Move in Years

June 19, 2013  2:30 PM PST 
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The cost for a 3.50% mortgage based on Mortgage Backed Securities closed up 1.20 points. During the day most lenders repriced for worse 

 

    

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By Al Bowman
Well, today's Fed events went as planned for the most part but we are not seeing the reaction in the bond market or result that was expected. In fact, what we are seeing doesn't really make much sense. Ugly is one word we could use to describe it although many others could apply. And causing further confusion is the fact that stocks did react to the news just as we thought they would.>> Read More at Realtor.com

 

By Jed Kolko, Chief Economist - The recent rise in mortgage rates has made buying a house a little more expensive: the increase in the 30-year fixed rate over the past month from 3.4% to 3.9% (Freddie Mac) raised the monthly payment on a $200,000 mortgage by $56, or 6%. However, because mortgage rates are still near long-term lows, and because prices fell so much after the housing bubble burst and remain low relative to rents even after recent price increases, buying is still much cheaper than renting. That means that the recent jump in rates doesn't change the rent-versus-buy math much. >