Mortgages Blog

Finance Blogs » Mortgages » Mortgage rates rise; not a bait and switch

Mortgage rates rise; not a bait and switch

By Holden Lewis · Bankrate.com
Friday, May 28, 2010
Posted: 1 pm ET

Mortgage rates are about an eighth of a percentage point higher than a week ago. In the last two days, your lender probably has either raised rates slightly or is charging more for discount points. That makes refinancing less attractive.

This isn't the result of a bait-and-switch scheme. Mortgage rates are volatile. They've been known to move a quarter of a percentage point, or even more, in an afternoon. Certainly, it's not unusual for rates to rise an eighth of a percentage point in a few days.

Rate movements have been relatively tame in the last year or so. Mortgage rates definitely move around these days, but more slowly than during boom times.

You probably feel disappointed if you thought about locking a rock-bottom rate early this week, but hesitated. It's possible that rates could fall again, but it's more likely that they'll continue rising.

What should you do? I don't know. Tuesday and Wednesday I urged people to lock. I was decisive then and indecisive now.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
5 Comments
KEVIN
May 30, 2010 at 6:30 pm

I AM WAITING FOR A 2.5%, 5 YR ARM NO INTEREST LOAN

Catherine Sheerin
May 30, 2010 at 1:06 pm

Hi Mr Lewis,
I read an article of yours How New Short Sale Rules Can Help You and want to get a copy. Please help.
Catherine Sheerin

Holden Lewis
May 29, 2010 at 8:30 pm

Rates didn't fall anywhere near one point. More like one-eighth or one-quarter of a percentage point.

Roberto
May 28, 2010 at 8:14 pm

I am intrigued by this note. I have my L.O. watching the rate since last week with instructions to immediately lock in a 15yf refi if it falls one point lower. Do you mean that he missed the bottom? He told me rates are still unchanged.