Mortgage rates have returned to the 6.5% level as financial markets shift their focus from economic data to escalating geopolitical events.\u00a0<\/p>\n
\u201cIf you\u2019ve got a deal, lock it in; there\u2019s room for mortgage rates to continue to climb higher,\u201d Nash Paradise, director of sales at UMortgage<\/strong>, advised loan officers. \u201cBrokers have flexibility that a traditional loan officer doesn\u2019t have, which is nice, but it\u2019s not worth the float \u2013 it\u2019s too risky; rates being in the mid 6s still feels like a gift compared to where we were in the last couple years. But we could very easily see one or two headlines and the next thing, they are at 7%.\u201d<\/p>\n In this environment, Paradise has personally shifted to more 45- and 60-day locks. The volatility is severe enough that a week\u2019s delay could make a deal unaffordable for a borrower, he said.<\/p>\n Mortgage News Daily<\/strong> reported Monday that 30-year fixed rates averaged 6.56%, up from 6.32% last week. Meanwhile, HousingWire<\/strong>\u2018s Mortgage Rates Center<\/a> showed 30-year conforming loan rates averaged 6.44%, up 5 basis points from last week\u2019s<\/a> 6.39%. Rates for 30-year Federal Housing Administration (FHA) loans increased 3 bps to 6.16% and jumbo loan rates rose 3 bps to 6.29%.<\/p>\n \u201cThat\u2019s just the median on where things are being locked,\u201d Andrew Cady, a UMortgage branch manager, said in a podcast Monday. \u201cMost people\u2019s interest rates are going to be above that number. This is the cr\u00e8me de la cr\u00e8me buyer, this is primary residence, top credit score, great down payment.\u201d<\/p>\n Another source of pressure has been the Federal Reserve<\/strong>, which on Wednesday decided to hold<\/a> benchmark rates steady. In his last press conference that day, Powell confirmed that he will remain on the board as a governor after his term as chair ends May 15, keeping a low profile \u201cfor a period of time to be determined.\u201d<\/p>\n Cady noted this \u201cspooked\u201d the market slightly, with investors now viewing Powell as a \u201cthorn in the side, rather than the guy that\u2019s about to exit.\u201d<\/p>\n Todd Bitter, national sales director at NEXA, said that news that Powell was leaving the Fed chair position gave some \u201coptimism to the market,\u201d pushing rates down. Trump\u2019s choice to succeed Powell, Kevin Warsh<\/a>, is advancing in Congress.<\/p>\n \u201cIt was a little bit of a disappointment to the market that Powell wasn\u2019t leaving, and Trump wasn\u2019t going to get another appointee,\u201d Bitter said.<\/p>\n Powell\u2019s final meeting as Fed chair revealed a divided board. Eight officials voted for the monetary policy action, one advocated for lowering rates and three backed the decision but objected to recent language regarding an \u201ceasing bias\u201d that suggested the central bank was moving closer to a rate cut.\u00a0\u00a0<\/p>\nFed holds benchmark rates<\/h2>\n
Secondary market<\/h2>\n