It’s day three since the Fed stopped buying Mortgage-backed securities and current mortgage rates are continuing to rise. MBS prices, which drive mortgage rates in the opposite direction are down -10/32 this morning. The decline in MBS prices is helping to push interest rates higher.
The current VA 30-yr fixed rate is actually 1/8 lower than conventional rates at 4.875.
The cost of securing FHA financing will rise tomorrow when the upfront mortgage insurance cost, a premium charged at closing as a percentage of the loan amount, is boosted to 2.25% from 1.75%.
The benchmark 10-yr T-Note yield has now moved over 4%, which many economists predicted it’s peak for this year would be.
We expect rates to continue to rise…