Yes, Mortgage Rates Are Now Over 7%, But It's Complicated

It’s no mystery that mortgage rates have been moving relentlessly higher in 2022. But how high is high?  That will depend on a number of factors, including:
The date and time of day of the quote (things change quickly)
The  lender in question (different lenders have slightly different pricing and can have vastly different quoting practices)
The specifics of the scenario (loan-to-value ratio, loan purpose, credit score, etc)
The presence of “points” and other upfront costs in the rate quote. 
For our purposes today, we’re mainly focused on the presence of points and, to a lesser extent, the variations between lenders.  As always, any rate you see in a major rate index or survey will assume essentially no “hits” (no upward adjustments to the rate or the upfront costs due to the particulars of your scenario).   The same is true of our daily rate tracking, which is now over 7%.  But it’s important to note that you may or may not actually see a rate quote of over 7%.  To truly understand why, you’d need a basic understanding of how mortgage-backed securities (MBS) translate to mortgage rates (there’s a primer for that).  If you don’t click the primer, here’s an attempt to distill a tome into a paragraph: MBS are bonds comprised of multiple mortgages.  They’re offered in 0.5% increments called coupons.  Each coupon is like a bucket that can contain a certain range of mortgage rates with +1.125% being the upper limit. 
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