Mortgage rates held steady to start the new week.  This keeps them in line with the best levels since November 2016.  There were no interesting developments in financial markets or in terms of economic data today.  Most news coverage was focused on the solar eclipse.  It’s a good thing the eclipse happened, because it’s not entirely clear what financial media outlets could have possibly discussed otherwise.

But again, with rates at the lowest levels of the year, “boring” and “sideways” are only terms that inconvenience someone trying to write about market movements whereas they’re a relative boon to consumers who are buying a new home or refinancing an existing mortgage.  

3.875% remains the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios, although quite a few lenders remain at 4.00%.  

Loan Originator Perspective

Small early gains were eclipsed by mid-day as our holding pattern continued.  I’m guessing market participation was limited today, know mine was.  Wish I had more sage suggestions, but when markets tread water for weeks, it’s challenging.  –Ted Rood, Senior Originator

With no major economic reports on this Solar Eclipse Monday we continue to follow the pattern from last week, the slow drift to the bottom of the range leaving us with rates at or near post-election lows.  Rates have been consolidating at this key pivot in treasuries.  I’m still advising clients to be locked if closing in next 30 days but any longer time frame is floating.     –Geoff Allison  Blue Skye Lending  NMLS #200002

Today’s Most Prevalent Rates

  • 30YR FIXED – 3.875-4.00%
  • FHA/VA – 3.5-3.75% 
  • 15 YEAR FIXED – 3.25%
  • 5 YEAR ARMS –  2.75 – 3.25% depending on the lender


Ongoing Lock/Float Considerations

  • Investors were relatively convinced that the decades-long trend toward lower rates had been permanently reversed after Trump became president, but such a conclusion would require YEARS to truly confirm
  • Instead of continuing higher in 2017, rates instead formed a narrow, sideways range, and held inside until April.  Investor perceptions are shifting such that fiscal reforms and other policy developments will need to live up to expectations in order to push rates higher.  Geopolitical risks would also need to avoid flaring up (more than they already have)
     
  • For the first time since the election, we’re in a rate environment where you wouldn’t be crazy not to lock at every little opportunity/improvement.  Until/unless it’s broken, the highest rates of early-2017 mark the ceiling, and we’re now waiting to see how much lower we can go from here.
     
  • Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders.  The rates generally assume little-to-no origination or discount except as noted when applicable.  Rates appearing on this page are “effective rates” that take day-to-day changes in upfront costs into consideration.

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