2 questions:
1) Obviously this past week has brought us the single largest one-week 30Y rate increase in the last two to three decades. Amazing to watch as a bystander. Question: I assume there are prospective buyers who were pre-qualified (before this rate move) for a certain loan amount at a certain rate. In general, how long are these rates good for? I have googled around and get wildly different answers.
2) What was fascinating to me was the size of the mortgage rate move relative to the size of the Fed Fund Rate move. It seems disproportionately higher - i.e, the spread between the two "widened" out. Does anyone have any better than average insight as to what caused this (I am assuming this has more to with where longer part of the curve normalizes) and, more importantly, any thoughts as to this perhaps being overdone and the "spread" narrowing out here in the near-term (say next 30 days).
TIA.
1) Obviously this past week has brought us the single largest one-week 30Y rate increase in the last two to three decades. Amazing to watch as a bystander. Question: I assume there are prospective buyers who were pre-qualified (before this rate move) for a certain loan amount at a certain rate. In general, how long are these rates good for? I have googled around and get wildly different answers.
2) What was fascinating to me was the size of the mortgage rate move relative to the size of the Fed Fund Rate move. It seems disproportionately higher - i.e, the spread between the two "widened" out. Does anyone have any better than average insight as to what caused this (I am assuming this has more to with where longer part of the curve normalizes) and, more importantly, any thoughts as to this perhaps being overdone and the "spread" narrowing out here in the near-term (say next 30 days).
TIA.
