WEB Notes: We figured at the beginning of the year, the market had about another year or two left in it. It is sure starting to look like that is correct. Good read here.
Refinancing activity plunges to the lowest level since 2000.
On its way to 5% and higher: The average interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) and a 20% down-payment rose to 4.84% for the week ending September 7, 2018, the Mortgage Bankers Association (MBA) reported this morning.
Mortgage rates – which move roughly in parallel with the 10-year Treasury yield – surged in two big bouts in this rate-hike cycle: First, from the near-historic low in July 2016 to March 2017; and after backtracking some, from September 2017 to mid-May 2018, when MBA’s measure of the average 30-year fixed rate hit 4.86%. Since then mortgage rates have vacillated in the same range – the highest since May 2011 (chart via Investing.com; red marks added).