Mortgage Rates on the Ascent: Refi Boom Over?

So much, for this week anyway, for the mortgage refinancing boomlet. While rates had tumbled earlier in the week on the Fed’s 75-basis-point move, hitting as low as 5.0-5.1% on 30-year fixed conforming loans, over the last two days rates have jumped back up, touching 5.50% nationally.


Does that mark the end of the refinance boomlet? Not entirely, because rates on 30-year mortgages are still well below where they started the year, up at 5.80%, so some pressure has come off. But mortgage markets are sure telling the Fed they aren’t yet convinced rates are going to go down and stay down.


  1. Mortgage market rates typically don’t drop when the Fed cuts rates, as they most often understand and have priced in the Fed’s current stance on interest rates. The Fed’s move on Tuesday was suprise emergency move, to prevent what would seem to have been an inevitable US stock market sell off, anticipated by the huge stock market declines internationally on Monday – when US markets were closed. However, on Wed the stock markets made a stunning recovery, reversing mortgage rate declines. I think it is all too early to call with an FOMC meeting next week and another rate cut expected.