Mortgage Rates Slightly Higher, But Still In Good Shape

Mortgages Rates rose slightly today
after hitting their lowest levels since late February yesterday.  While that leaves yesterday and 4/10 as two
best days for mortgage rates over the past month and a half, today’s offerings
are still better than those from the week ending 4/6. 

The net effect leaves the
Best-Execution Rate for 30yr Fixed
Conventional Loans between 4.0% and 3.875%
depending on the scenario.  This has been the case for almost two weeks
now.

 (read more
about Best-Execution calculations).  

As the current week
progresses, we continue seeing
reinforcement
of last week’s analysis noting a relatively indecisive attitude in bond markets including the MBS
(Mortgage-Backed-Securities) that most directly influence rates.  Both MBS and Treasuries have recently carved
out fairly narrow ranges and in fairly short order following the disappointing
Jobs figures on 4/6.

The indecisive
attitude is evident in the sense that bond markets have been hesitant to push
that range much wider than the boundaries set by last week’s trading.  Although there’s no way to know if this will
continue to be the case, we can be sure that the events on the calendar are of much less consequence this week vs next,
when we’ll get the FOMC Announcement, a Bernanke Press Conference to follow, as
well as the first look at Q1 GDP.

So although we
continue to view the current week as more likely to be stable relative to next
week, we’re still keeping an eye out for
European headlines
and to a lesser extent, any major surprises in the
scheduled economic data.  Regarding the
latter, there is no significant economic data tomorrow, so markets will be more
susceptible to European drama if we get some, or more likely to stay inside the
recent range if we don’t. 

Today’s BEST-EXECUTION Rates 

  • 30YR
    FIXED – 
     3.875%-4.0%
  • FHA/VA -3.75%
  • 15
    YEAR FIXED
     –  3.125-3.25%
  • 5
    YEAR ARMS – 
     2.625-3.25% depending on
    the lender

Ongoing Lock/Float Considerations 

  • Rates and costs continue to
    operate near all time best levels
  • We’ve recently spent time
    further away from the very best levels of the past few months
    having broken away from a long, stable trend.
  • That led us to expect greater
    volatility, and indeed we got it!
  • But now that volatility MIGHT
    be depositing us back in a sideways range near all-time lows
  • Rates could easily move higher
    or lower, but given the nearness to all time lows, there’s generally more
    risk than reward regarding floating
  • (As always, please keep in mind
    that our talk of Best-Execution always pertains to a completely ideal
    scenario.  There can be all sorts of reasons that your quoted rate
    would not be the same as our average rates, and in those cases, assuming
    you’re following along on a day to day basis, simply use the Best-Ex
    levels we quote as a baseline to track potential movement in your quoted
    rate).

…(read more)

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