ML-Implode News - We Just Had The Worst Day For Mortgage Rates in Over 3 Years

Mortgage RatesÂ skyrocketed today,Â relative to their average range of movement. Â It was the single biggest move higher since the days of the taper tantrum in mid-2013. Â Virtually all lenders are quoting conventional 30yr fixed rates that are at least an eighth of a point higher versus yesterday. Â Over the past decade, you can count single-day eighth-point moves without using any toes. Â Some lenders were a quarter point higher, which has only happened a few times, ever.
The source of the drama is the market's paradoxical reaction to Trump's victory. Before the election, news that benefited Trump generally benefited rates. This was logical because Trump connoted uncertainty and rates tend to benefit when investors seek shelter from uncertainty by buying bonds... But the positive narrative unraveled before sunrise. According to the negative narrative, Trump's claimed policy goals stood a greater chance to hurt bond markets and push rates higher in the long-run. That negative narrative wasn't a new concept, but very few market participants expected it to steal the show so quickly...

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We Just Had The Worst Day For Mortgage Rates in Over 3 Years