Mortgage Rates Highest in a Week

Mortgage rates rose moderately for the 3rd day in a row today, bringing them to the highest levels since December 31st for the average lender.  In outright terms, this equates to an increase of an eighth of a percentage point (.125%) since the most recent lows last Thursday.

While it's only 3 days of weakness in the mortgage market, the concern is that it could be part of a much larger market trend.  Stock prices and interest rates moved lower together for the better part of 2 months.  The drop was relatively extreme for stocks, and nothing to shake a stick at for rates.  The risk is that we're only in the early phase of a bigger correction.  While that would be great news for stock market investors, it would be less pleasant for those with a vested interest in lower mortgage rates.

All of the above having been said, it would take quite a bit more weakness before we've even retraced half of the move that occurred over the past 2 months.  In several ways, these sorts of corrections in interest rates are a necessary part of positive longer-term trends.  In other words, the past few days could be part of a broader, negative trend or a necessary ingredient in an even broader positive trend.  We'll know more about which eventuality is more likely in the coming days.

This Daily Mortgage Rate Update is provided in partnership with Mortgage News Daily.