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Nov 6
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Jon Kutsmeda | Mortgage Tech's avatar

Yes, definitely a potential disqualifier for income and/or down payment tight buyers.

However, they had over a week to think about locking before FOMC, and anyone that was teetering in-and-out of qualifying should have never floated into a Fed rate decision.

This is why I post our LOCK-O-METER rate lock risk scores in my Monday Data Deluge.

https://jonkutsmeda.substack.com/p/mortgage-rate-data-deluge-nov-03

It is also unfortunate for an entire cohort of potential refis.

We were getting a lot closer to above par pricing in the 5.0 UMBS coupon (broke above on Oct 28).

That would start to unlock the next tier of low-to-no cost rates.

C'est la vie.

Maybe this corrective move stales and starts to reverse, maintaining the overall downward trend - let's hope.