Rates are actually lower today (and this week)

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Several headlines cite higher mortgage rates today. Even if you read beyond these headlines, you’ll still feel that this week’s rates are higher than last week’s. Unfortunately (or maybe, fortunatelyin this case), all of the above would be incorrect.

The rates are actually lower today and significantly lower than last week. In fact, as long as they still end the business week on Friday, rates this week are significantly lower, with the average lender offering conventional 30-year fixed rates about a quarter point lower than those seen on Friday afternoon.

You would have to go all the way back to April 27 to see anything that low.

So what about the misinformation in the aforementioned headlines? It is not intentional. It’s a byproduct of the news media’s penchant for quoting Freddie Mac’s weekly survey. The survey tends to be out of date by the time it is finally published. This is usually not a problem, but when rates are volatile, the survey can be very different from reality. Today is just another one of those days in what has been an exceptionally volatile 2022.

The average lender is now quoting conventional 30-year fixed rates in the 5.375% or lower for higher level scenarios. This is down from 5.625% of recent highs from just a few days ago.

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