Off we go! As predicited by many ( me included ) rates have begun their run up after the Fed has now exited the MBS market. In November of 2008 when the program was announced 30 year interest rates dropped 1% in a day. While rates didn't jump back up 1% on Wednesday when the program ended there had been indications that they would move up.
Now after 18 months of rates at or below 5% all of us wroking with residential buyers now get to be grief counselors when a borrower hears that they won't be getting the same rate as their neighbor who purchased or refinanced recently. If a borrower didn't lock their rate last Monday it's too late.
I expect that we will see an upward trend to somewhere in the 5.5% to 5.75% range over the next week or so. Already in the last 10 days the 10 year treasury is up .306% and climbing. Rememebr while the 10 year is not the only marker for 30 year mortgage rates it is one that allows for a "quick and dirty" check of where rates could be going.
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