Lender increased mortgage rate from 5.0% to 6.5%

[Troy Pickens]

I have a property under contract and was planning on signing the mortgage paperwork yesterday. I received the disclosures in the morning with a stated 30 year fixed 5.0% interest rate (0 points) for a $70,000 SFR investment property with 20% down. I then got a call from the mortgage company in the afternoon telling me that mortgage rates were skyrocketing and my new rate with 0 points would be 6.5% and I need to lock or it could increase even more.

A 1.5% increase on mortgage rates in a day seems crazy to me. Has anyone else experienced this or does anyone have knowledge of what happened with mortgage rates yesterday? 

Thanks!

Troy

[Alex Deacon]

@Troy Pickens thats an extraordinary jump. The rates sound very high to me. Call a few reputable mortgage brokers and get their opinion. Do this ASAP so you can make a switch if needed before closing.