Melissa's Mortgage Minute

Remember how quiet the markets were this summer? Bonds traded in the 1.50-1.60 mark for over two months, volatility was low and mortgage rates were stable.

You can kiss that good-bye! In just one week the yield on the 10-year bond has gone from 1.50% to 1.72%!!!! Nearly a quarter point jump in five days. So, what happened? The Fed said too much. A number of Fed members spoke and for the most part they are all hawks and ready to raise rates in spite of some weaker economic data. Then, the stock market puked and closed today at 18,066 losing over 400 points on fear of rate hikes, plus weak oil didn't help either. Even more, there is the election to fret over and with NO economic data to digest the markets have gone haywire. In fact, we won’t get any data of consequence until Thursday.

As for mortgage rates.... well they are going UP. In fact, many banks have raised rates already and more than once. Those who haven't are likely to wake up very soon and follow suit. In some cases, rates have gone up over 1/4% in rate in the last three days with no end in sight. My advice? Buckle up and cross your fingers that it won't get worse!