A return of the 4% mortgage rate?

In his latest HW+ column, HousingWire's lead analyst Logan Mohtashami asks when we can expect mortgage rates to rise above 4%.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   For the first time since June, mortgage rates last week eclipsed the 3% mark.    In his latest HW+ column, HousingWire's lead analyst Logan Mohtashami asks when we can expect mortgage rates to rise above 4%. He writes:   Since the summer of 2020, I have argued that if mortgage rates could get over 3.75%, days on market would rise and the rate of price growth would cool. This will be bullish for housing because the price gains we have been seeing are extremely unhealthy.  A common theme in the interviews I have done in 2021 has been that this is the unhealthiest housing market since 2010 — not because we have a credit boom or a bubble forming, but because we have forced bidding on too few homes. We need the days on market to grow out of the teenager stage. If the antidote to our housing market ills is higher mortgage rates, when can we expect getting this cure? The unfortunate answer is not anytime soon. The 10-year yield is currently at 1.48%. For mortgage rates to hit 4%, Mohatashami says the magic number is the 10-year-yield at 1.94%.  LOs – when do you expect rates to really start moving? And what are you doing now to prepare for higher rates? Email me at jkleimann@housingwire.com.   James Kleimann

Managing Editor, HousingWire

When will mortgage rates get over 4%?   With mortgage rates hitting above 3% last week for the first time since June, it's a good time to revisit what we should expect next for mortgage rates. HW+ Premium Content

Permanent RON legislation is being enacted across the US

With permanent RON legislation being enacted across the US, lenders and title companies are leveraging eClosing to process purchases and refinances in record times. See how you can deliver that digital experience your borrowers are asking for. Watch demo.

Sponsored by Stavvy

How one lender is solving problems in the fix-and-flip space   Acra Lending is looking to make fix & flip lending simpler and more efficient for borrowers, lenders and brokers. The company has created a new vertical of loans and an entirely new LOS designed just for borrowers looking to purchase a home and renovate it to put back on the market. Presented by Acra Lending

Market for MSRs revs up as year-end approaches   The secondary market for MSRs has been heating up recently, but the specter of Ginnie's proposed risk-based capital rules could throw sand in the gears. HW+ Premium Content

Home equity won't be enough to prevent foreclosure for some   Despite record-high home prices, home equity may not save some borrowers in forbearance from foreclosure, according to a Black Knight report published today.

HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Manage preferences

Share this

Share on FacebookPlus on Google+