It’s hard to quantify just how bad today was for mortgage rates because there’s no quality day-over-day mortgage rate data from before 2009 (when we created our own).  In that time, there has only been one other comparable day to today in terms of the jump in mortgage rates. As a fan of the whole truth, I feel compelled to say that there were a few days in March 2020 that were bigger, but I’m not counting them as comparable days because they were the product of TWO-WAY volatility and a once-in-a-lifetime combination of market conditions and Fed policy response.  That leaves Juley 5, 2013 as the only truly comparable day.  It too came at a time when rates had already been rising rapidly in response to an evolving outlook for Fed policy.  The difference back then was that the Fed had simply decided it was time to finally begin unwinding some of the easy policies put into place after the Financial Crisis.  This time around, the Fed is in panic mode about runaway inflation.  And today specifically, it’s the market that’s panicked about the Fed’s potential panic at the upcoming meeting and policy announcement set to be released at 2pm on Wednesday afternoon. Long story medium long , Friday morning brought the release of a report that showed hotter than expected inflation.  Inflation is an enemy of interest rates (all other things being equal, higher inflation = higher rates).  The Fed is in what’s known as a blackout period ahead of Wednesday’s announcement.  During this time, they do not offer public comment on monetary policy, otherwise we certainly would have heard something from them today to help smooth out some of the volatility.

Published On: June 13, 2022 / Categories: Mortgage News /