Rates have risen 0.25% in less than three weeks, and 4% is upon us (and the Fed hasn’t done anything yet). From MND:
http://www.mortgagenewsdaily.com/consumer_rates/435104.aspx
Mortgage rates got hit hard today, rising at the fastest day-over-day pace since November 8th 2013. As of today, this also makes February the worst month for rates since May 2013, and the most abrupt month-over-month reversal since January 2009. That all could change by the end of the month, of course, but then again, it could also get even worse.
Either way, the strategy is and has been the same recently: we’re in the midst of a strong negative trend that must be taken seriously unless/until it’s convincingly defeated. Naturally, that assessment favors locking over floating, and naturally, it implies a ton of potential frustration for those who lock right before the bounce.
As for today’s damage, it’s meant an even eighth of a point in interest for most lenders. In other words, if you had been quoted 3.75% on Friday, today’s quote would likely be 3.875%. Either way, costs are significantly higher.
If rates move much higher eventually, it might make sense to set up rent-to-own deals instead of outright purchases so that the seller’s ultra-low financing can remain in place.