Mortgage rates were at their best levels in roughly a month last Friday afternoon.  Since then, they’ve risen modestly on each of the past two business days.  As has been the case for quite some time, day-to-day movement continues to be very tame.  The actual interest rates at the top of loan quotes rarely change from one day to the next.  Instead, fine-tuning adjustments to the overall cost of financing come courtesy of slightly higher upfront costs–at least in today’s case.

In other words, if you were being quoted 3.875% yesterday on a 30yr loan yesterday, chances are you’d be seeing the same rate today, but with upfront costs just a bit higher (or a lender credit that’s just a bit lower, depending on the scenario). 

In the bigger picture, rates are attempting to push lower after rising fairly quickly from early September through early October.  The weakness (read: slightly higher costs) over the past 2 days doesn’t derail that effort, but that could change if the weakness persists for another day or two.

Loan Originator Perspective

Bonds continued hanging within their narrow recent ranges today, and my pricing was virtually identical to Monday’s.  Not sure what it will take to jolt rates higher/lower from here, but it appears significant motivation will be required.  Floating could net small returns, the question is whether it’s worth the risk, given likelihood of minimal gains.  If you do float, be prepared for pricing to get worse, it happens regularly! –Ted Rood, Senior Originator

Following an ugly morning, bonds have managed to rebound nicely.   A few lenders have repriced for the better.  Since rate sheets came out when bonds were at their worst levels, i think it is worth the risk to float overnight.  –Victor Burek, Churchill Mortgage

Today’s Most Prevalent Rates

  • 30YR FIXED – 3.875-4.0%
  • FHA/VA – 3.5% 
  • 15 YEAR FIXED – 3.25%
  • 5 YEAR ARMS –  2.75 – 3.25% depending on the lender

Ongoing Lock/Float Considerations

  • 2017 has proven to be a relatively good year for mortgage rates despite widespread expectations for a stronger push higher after the presidential election in late 2016.  Most of the rate spike was done by the end of 2016 and we’ve generally moved sideways to lower since then
  •  The biggest question is whether or not this counter-intuitive trend has an expiration date.  Rates haven’t been immune from brief corrections back toward higher levels, and each correction causes concern that the good times are over.
  • Despite those concerns, we’ve seen rates make new lows in April, June, and September.  Although rates have been rising since early September, they’d have to move even higher before we’d consider a change in the bigger picture theme.
  • All of the above having been said, past precedent suggests we’re due for a much bigger dose of volatility some time soon.  
  • 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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