Annamaria Andriotis reported this week at The Wall Street Journal Online that, “So much for that refi.
“Rates are well above 4% for the typical 30-year fixed-rate mortgage. The average hit 4.125% on Friday—the highest since July 2015, according to MortgageNewsDaily.com. That is more than half a percentage point higher from the average on Election Day.
“Rates on 30-year fixed mortgages move in tandem with the 10-year Treasury yield, which was 2.34% on Friday afternoon; it was just 1.88% on Nov. 8.”
The Journal article noted that, “The rate rise contributed to a downward revision last week for mortgage origination expectations for 2017. The Mortgage Bankers Association said it is now expecting total lending volume of $1.58 trillion for next year, down 3% from its previous projection. The decline is entirely driven by a lower projection for refinance volume in 2017.
“While current rates are low versus the historical average, the increase is still a problem for lenders.
“Consumers have become accustomed to a low-rate environment where mortgages above 4% appear expensive, especially for anyone who would consider refinancing.”
