[quote=IONEGARM][quote=FormerSanDiegan]Sometimes a smallish, e.g. 1/2 point, increase in rates can create a sense of urgency to buy now versus later (short-term phenomenon) [/quote]
You see this when the FED is acting.. the punch is telegraphed on the news nightly and the masses confuse fed rates with mortgage interest rates so they rush and lock before the rates go up.
But when the bond market spikes and rate sheets go up with no notice.. the horse is already out of the barn and people who could have had 4.75% but wanted 4.5% are left out in the cold.
Excellent point IONEGARM. I think the phenomenon I described happens often when the FED raises rate. In that case it is also not usually a logical response.