Mortgage Rate Volatility Could Increase After Tomorrow's Jobs Report

Mortgage Rates have risen modestly over the past few days with the average lender now offering the highest rates in roughly 2 weeks.  The ground covered during that time is fairly underwhelming unless you make a habit of examining day-to-day rate movement under a microscope.  In many cases, a prospective mortgage borrower would be seeing the same “note rate” on  a mortgage quote throughout that 2 week period.  
Why am I telling you that rates have moved then?  Because “note rates” are only one side of the mortgage rate equation.  The upfront costs (or credits) determine the other side.  An increase in upfront lender costs (or a decrease in lender credit) is the same thing as a higher interest rate.  That upfront side of the equation allows for smaller adjustments.  Consecutive days with similar adjustments eventually add up to note rates bumping up or down by 0.125% (the typical interval between mortgage rate offerings)….(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.
Source: mortgagenewsdaily.comNew feed