One of the biggest single-day rate increases in the recorded history of mortgage rates was registered by the Mortgage News Daily (MND) as rates jumped from 6.26% to 6.53% on Friday.
This leap was attibuted to hotter than expected jobs reports from the US Bureau of Labor Statistics showing 254,000 new jobs were added in September. The employment rate also fell from 4.2% to 4.1% for a second consecutive month.
The housing market is already quite slow with only 25 out of every 1000 homes changing homes in the first eight months of 2024, according to mortgage research firm Redfin.
“Mortgage rates have already fallen more than one percentage point from their 2024 peak, but we have not yet seen a significant increase in the number of homes changing hands,” said Redfin Senior Economist Elijah de la Campa. “With the majority of homeowners locked into low mortgages, rates will need to keep falling consistently for many to feel comfortable moving on from the deals they secured years ago.”
By Staff