Rates End Long Decline

1.     Rates had fallen all the way to 3.375% on the 30 year fixed conforming loan for most borrower last week,  Friday’s big sell off, however pushes the rate back up to 3.50%.  The high balance conforming rate remained at 3.625% and the jumbo 30 year closed the week at an attractive 3.75% with no points.  The conforming 30 year is always the most volatile rate as it is tied directly to mortgage backed securities with each 50 basis points in the pricing equating to one eighth in rate.  Thus the increase Friday.  The jumbo rates, which I have explained are usually chosen by a committee have remained low for quite some time and were not rattled by Friday’s volatility.