Mortgage Rates: AM Weakness Mostly Recovered in the PM
After a rough morning, the secondary mortgage market recovered enough to claw back nearly to yesterday's levels. That leaves borrowing costs required for average Mortgage Rates unchanged to marginally higher depending on the lender.
This basically makes today a non-event in the sense that there's no change to yesterday's "current market" rates, and leaves next week's FOMC meeting as the next big event with market-moving risk. European headlines also continue to be a factor-one which does not adhere to a schedule and can certainly affect our mortgage rates here at home.
CURRENT MARKET*: The BestExecution 30-year fixed mortgage rate is no longer solidly at 4.125%, but now straddles 4.125% and 4.25% Several lenders are willing to offer lower rates, but in most cases, those quotes carry additional closing costs. On FHA/VA 30 year fixed BestExecution is straddling 3.875% and 3.75%, (no change). Deals can be structured with lower rates, but again, you'll pay more for those, so make sure you assess the time it takes to break-even on the extra expense. 15 year fixed conventional loans are best priced at 3.375% (no change). Five year ARMs are best priced at 3.125% (no change). Please note there can be a fair amount of variety between lenders and that this has been exaggerated by recent market volatility.
GUIDANCE: In terms of BestExecution rates, we're no longer closer to moving down than moving up. If you still have access to the same rate as Wednesday, the arguments for locking it in have greatly increased. We'd continue to caution that much of the current strength in bond markets is due to uncertainty in Europe and the headlines that can change that outlook DO NOT adhere to a schedule. In other words, things can change rapidly. We continue to favor locking due to the nearness to all-time lows. If you're absolutely determined to "float it out" or otherwise don't have an urgent need to refi but are just waiting to see if rates get better, it seems that markets are shifting their focus to next week's high-risk event, the 2 day FOMC meeting on the 20th and 21st, not to mention ongoing potential for unexpected headlines between now and then.