Mortgage rates managed to improve modestly for the average lender today, but they remain significantly higher than they were before last week’s regulatory drama. By the time we consider the size, scope, and the precipitous imposition of the new refi fee, we’ve never seen anything remotely similar. Lenders were definitely taken by surprise and they’ll definitely be paying dearly for all refis that were already locked.
When lenders get big, negative surprises concerning profitability or new cost requirements, they tend to raise rates very quickly and by a larger-than-necessary amount. [Top Tier Scenarios 30YR FIXED: 3.12%]
• At 8:30 AM ET, Housing Starts for July. The consensus is for 1.237 million SAAR, up from 1.186 million SAAR in June.