Within a few days, mortgage rates have shot up as much as 1%
. This is tied largely to inflation expectations.
Speaking of which, "stagflation" appears to be the buzzword of the day, appearing in headlines and stories in the WSJ
, NYT and LAT today. (Opening up lots of 1970s analogies.)
This graph was produced by a free tool at Bankrate.com
to show California rates over the last 3 years. Here's another tool
hosted at the WSJ using Bankrate data nationwide.
The current spike, particularly on jumbos, mirrors the August 2007 panic when the mortgage meltdown became undeniable. That one eased, but you have to wonder if this time it's different. (One thing that's different is that "jumbos" are being redefined as $730k+, in our area, anyway, but this will take till Summer to sort out.)
Cue Kaye Thomas
[T]his market is far more like the one in the late 70's and early 80's. The last time I saw rates rise like this they went up 6% in 6 weeks. Believe me this is not a good thing...this is scary stuff folks.
Yikes, Kaye. It could be temporary.
For additional coverage, see Jim the Realtor's blog
(San Diego) and LA Land