Zillow is rapidly catching up with where the rest of the mortgage providers offer 30 Year Fixed Rates Mortgages, and as it reported moments ago, the 30 Year Fixed in the Zillow Mortgage Rate Monitor rose from 3.94% to 4.1% in the week ended today.
As we reported previously, the latest Wells 30Year Fixed refi rate is now 4.625%, with the overall complex about 100 bps higher from where it was just a few months ago. The move prompted none other than Frddie Mac to issue a warning about the future of the housing market.
Is that a big move? The answer, conveniently, comes from a just released note by housing expert Mark Hanson who explains why a “1% rate surge changes everything”
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The Rate Surge Changes Housing Affordability Statistics
Redfin.com did a purchase market survey of 2400 ready-buyer users between Nov 7 and 11 – right when rates first started surging and were much lower than today – on how a 1% jump in interest rates would impact their purchase decision, if at all.
Note, today rates are 50 bps higher than when the survey was done and up greater than the 1% referred to in the questioning.
This post was published at Zero Hedge on Dec 20, 2016.
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