Mortgage Rates Tick Upward After Strong Job Figures

After a two week stretch of returning to record lows, mortgage rates increased slightly over the last seven days.

A combination of stronger-than-expected job figures last Friday and a surge in borrower demand placed upward pressure on rates late last week, more than offsetting any declines brought upon by losses in the stock markets. The delayed rollout of the FHFA's price adjustment on mortgage refinances – announced two weeks ago – sparked a surge in application volume and forced lenders to boost rates slightly to maintain control of their pipelines. While this week's uptick in rates was modest, more substantive increases may be on the horizon in the coming weeks. For example, the reapplication of the aforementioned FHFA price adjustment will impact rates sooner than people think.

Even though the adjustment won't officially be imposed until December 1, lenders are likely to start applying it to loans as soon as October, meaning the adjustment's impact will likely show up in rate quotes in as little as a few weeks.

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