It is not uncommon at all, in fact it is quite normal to see mortgage rates move up when the stock market is strong. The last several days saw a tremendous run up on wall street with nearly every index blasting through all time records. Mortgages are competing with stocks for investor cash and equity has been moving to stocks all week. Investors are not looking for higher returns on mortgages and we saw a sharp adjustment yesterday.
Buyers don't need to panic, but this is an example of the potential for volatility in mortgages and thus the buying power of borrowers. This is a great time of year to buy a house. It tends to be a little more quiet and sellers are anxious about getting an offer before the holidays. Meanwhile sellers can rest assured that the people outside braving the chillier late autumn temps along with rain and snow are serious about buying a house.
Buyers can relax it is only a matter of time before investors start taking profits on all these stock gains and then that money will likely move back into the warm embrace of mortgage securities. This will release some pressure and lower rates again. These last couple of years have been wonderful for mortgages even with this latest uptick. This is not the normal state of mortgage affairs and a return to higher rates is inevitable at some point. Buyers are well advised to strike while the iron is hot and get the home of their dreams while it remains affordable.