Sharpest Mortgage Rate Jump Since Oct 1987 - Posted by J.P. Vaughan
Posted by J.P. Vaughan on October 10, 1998 at 13:16:42:
Sharpest Mortgage Rate Jump Since Oct 1987
Volatile financial markets and a weakening U.S. economy
caused the Fed’s to lower the Federal Fund interest rate
by one-quarter percent. In the meantime, within a few days,
mortgage rates have jumped by as much as one-half of a
percentage point or more.
For example, Colonial Savings’ 30-year fixed one-point
mortgage jumped from 6.375% on Tuesday to 7% on Friday.
The Los Angeles Times reported today that average southern
California rates (of mortgages up to $227,150) went from
6.565% Thursday to 6.758% on Friday, up from the 6.153%
level just 9 days earlier on October 1.
This is a gigantic leap for such a short time frame. As
reported in the L.A. Times, some mortgage experts have
called this move “the sharpest since the October 1987
stock market crash…”
It’s also in the opposite direction of the short-term rate
I thought this was rather interesting.