Rates always go up faster than they come down
This is a rule that has no exception, at least not one I've seen so long as I've been in the mortgage industry and following market trends. Today was unfortunately a great example. Over the past few months we've seen several jobs reports miss expectations, and the market has reacted modestly in slight rate decreases. Today, the jobs report came in better than expectations, and mortgage backed securities (MBS) fell & fell fast.
Forget 'technical resistance', bonds fell straight through that. Forget common sense, when it comes to the jobs report, common sense goes out the window. Anyone that tells you they can accurately predict interest rates in this market environment is either delusional or dishonest.
Today was another piece of evidence that the marketplace is looking for a reason to increase rates. This is one of several downsides to remaining close to the "historic low" interest rates. When you're at the historic low, nobody knows how much room there is to move down, but everyone knows there is a whole lot of room going up.
A single bad day for interest rates often needs 3 good days to break even. This is why I advise people to lock their interest rate if they're happy with their monthly payment. Since the fed has started their QE program(s), we've been in uncharted waters when it comes to market events and reactions. Nearly every major movement has been influenced, on a macro level, by the knowledge that eventually the fed's printing press is going to slow down substantially or shut off completely, but nobody knows when or what the total effects of that stoppage will be.
Your best bet? Find a rate that you're happy with that gives you a payment you're comfortable with, and lock it in! It'll save you a ton of stress and protect you from extreme market movements on days like today.
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