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Neural Foundry's avatar

That 62 bps jump since late October is pretty brutal for buyers who were planning to close soon. Some lendrs might be pushing rate buydowns harder now to keep deals alive. Wonder if we'll see more sellers offering concessions to offset these increases.

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.