Mortgage Rates Fell Again, But There's a Catch

Mortgage rates dropped at a modest pace for the 3rd straight day on Thursday.  This brings them back in line with levels seen at the end of last week.  That’s notable because many media outlets–even some with a focus on mortgages and real estate–are running articles saying that rates are higher this week.  While it’s true that rates WERE higher on Monday, they’ve quickly fallen back into line.
The source of the confusion is the same as it ever was on any given Thursday during times of relatively higher volatility.  The vaunted Freddie Mac mortgage rate survey is an industry and news media benchmark.  It comes out every Thursday, but only captures rate quotes from Monday through Wednesday (with heavy weight given to Monday based on my observations and comparisons with average daily rates).  So if last week’s rates were pretty OK on Monday and much higher the subsequent Monday, Freddie’s survey will tell us rates are higher, regardless of the movement on the other days of the week. es in upfront costs into consideration….(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