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November 18, 2022

The Breaking News That Didn’t Break – Market Update Nov 2022

The day before Veterans Day, Thursday November 10th, 2022, the basis points in the mortgage industry jumped about 200bps. That’s an additional 2% profit for banks and mortgage companies in the home lending industry… and yet NO NEWS BROKE in my own news feed until a week later when CNN wrote up an article on a week long drop in rates that haven’t been seen since 1981. In reality, it was more of a 12 hour rise in basis points, which nearly dropped rates by an entire percent, and the jump brought us back to September’s levels (two months prior.) This jump possibly has never been seen in history and even Fox News only reported a ¼% drop in rates, but we know the media, and if there’s no fear… there’s no story.

What Happened to Interest Rates Before Veterans Day 2022?

If you haven’t watched the episode on Cost of Credit, you need to watch that now. Basically, mortgage brokers across the country woke up to an insane increase of basis points which basically jumped 200bps, which is basically a 2% increase in profit for banks. I have generally seen and accepted that interest rates follow the basis points by about 3 weeks. However, since the jump was so high, some banks and lenders dropped their mortgage rates by 1%, which is still only half of the increased profit that they will make off of this profit jump.

Basis Point Changes from April to November 2022

Stay In Touch With Your Mortgage Broker

Thanks to the jump, after significant rises in home interest rates this year, the industry is currently less than 1% off of where it was over the summer, about 5 months prior. Whatever your situation, there’s a Juicy Solution waiting for you. Stay in touch with your mortgage broker as they are in touch with the mortgage industry on a daily basis. Also take a look around the website, there are more helpful blogs and resources to help you better understand the home lending industry.

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