Market Recovers from Last Week’s Spike
Last week saw one of the biggest spikes we have seen in the mortgage market in a long while. On Thursday, many lenders saw a jump of as much as an eighth of a point, which is truly rare. In fact, this is the biggest spike seen over the course of a single day we have seen in two years, and only fourteen other days in the past five years have been as bad or worse.
This exceptional activity can be attributed to a perfect storm of volatile factors. Not only was Thursday looking forward to the monthly jobs report, but we were still experiencing some volatility from the upcoming Fed rate hike. Meanwhile, the European Central Bank’s policy announcement fell significantly short of expectations. The good news is that the market is gradually recovering. As of Monday, many of the more aggressive lenders were back down to their pre-spike levels. Locking into rates shortly after such a spike is a somewhat risky venture, but the likely Fed rate hike due next week could mean that you’re unlikely to see anything better for a while.
