Mortgage Rates: Say No to Snowballing!

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Posted To: Mortgage Rate Watch

A 7-week mortgage rates range was finally broken last Friday. The directional move that took place afterward was not fence-sitter friendly. "Best Execution" home loan borrowing costs rose rapidly. "Teetering on a ledge" <--- That's how we would describe this week in the primary mortgage market. WHAT ARE WE TEETERING ON? WHAT'S AT STAKE? Potentially another 0.25% to 0.375% move higher in "Best Execution" mortgage rates. That's right. Right after we just experienced a frustratingly large spike last week...the potential for another still exists. The uncomfortably quick move was a function of a phenomenon we call "snowball selling" . Snowball selling in the secondary mortgage market forces lenders to reprice their rate sheets for the worse. Snowball selling has been known to warrant multiple...(read more)

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Source: www.mortgagenewsdaily.com

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