Mortgage Rates Highest Since Early 2011: Fed Could Push US Into Recession

The 15-year average mortgage rate is 4.22%. The 30-year rate is 4.72%. These are the highest rates since early 2011.

Bleakley Advisory Group's Peter Boockvar says the Fed and Global Central Banks Could Push the U.S. into Recession.

Mortgage Rates Highest Since Early 2011

Mortgage News Daily sees things slightly differently but the the disagreement is over a few meaningless basis points.

Mortgage rates were slightly lower again today, but there are some caveats. First of all, the average lender wasn't in substantially better shape compared to yesterday afternoon. On top of that, bond markets (the underpinnings of mortgage rates) weakened throughout the day. If lenders were beginning their day looking at current bond market pricing, we'd likely have seen rates edge slightly HIGHER. As such, unless bonds manage to receive solid support from Asia and Europe on Monday morning, US lenders will likely be forced to bring rates a bit higher.

Today's Most Prevalent Rates

  • 30-YR FIXED - 4.75-4.875%
  • 15- YEAR FIXED - 4.25%-4.375
  • FHA/VA - 4.5%
  • 5 YEAR ARMS - 3.75-4.25% depending on the lender

Those rates are slightly higher than the rates posted by the St. Louis Fed.

Mike "Mish" Shedlock

Comments
No. 1-12
everything1
everything1

Kind of a lag, but the 30 year mortgage is back at 5%, that's still a pretty great rate, but I don't understand why the fed is hiking so quickly. Still, why would it matter, the long term trend for interest rates is down, people will buy knowing they can refinance later.

Casual_Observer
Casual_Observer

From pete boockvar we no longer live in business cycles but credit cycles. It will be interesting to see what tips the apple cart this time around. My guess is we finally get the bond crisis of a lifetime.

Casual_Observer
Casual_Observer

This boom is built on a house of cards. Like many before it. Unfortunately you have to dance until the music stops. Just stay near the door.

KidHorn
KidHorn

I bought my first house with a 9.5% 30 year fixed, I got a great deal because the mortgage was assumable. A great selling point when rates would go back up to 12%, like they were a year earlier. Of course houses were way cheaper back then.

RonJ
RonJ

There's that word could, again. The FED artificially holding the FED rate at ZERO to .25% for years on end, WILL cause a recession again.