Mortgage Rates Continue Higher

Mortgage Rates continued higher today with Best-Execution rates about an eighth of a point higher. 

There are all sorts of challenges in the secondary market today, including increased optimism about the situation in Europe and the necessity among the biggest players in the market to move money around here at the end of the quarter regardless of what economic fundamentals are doing.

This makes for an environment where the movements we see in rates won't necessarily feel like they're in line with the economic events that are occurring for the rest of the week.    

Today's Rates: 

• BESTEXECUTION 30YR FIXED -  Up to 4.0% in most cases today
• FHA/VA - still at 3.75% !!
• 15 YEAR FIXED -  solidly back to 3.375%
• 5 YEAR ARMS -  low to mid 3% range, variations from lender to lender.

GUIDANCE:  If you're in the situation mentioned yesterday where your quoted rate rose between Friday and Monday, but did not increase today, locking is advised.  If you're quoted rate did increase today, and you have the flexibility and risk-tolerance to allow for floating in the first place, we'd continue floating here.  Why?  First reason: last week we noted that rates are in a range between 4.125 and 3.75%  in terms of 30yr fixe best-execution.  With today's Best-Ex rates at 4.0 or 4.125% depending on the lender, this is the highest end of the recent range.  Be ready to lock at a loss if it breaks, but float if it doesn't.  Second reason: we think things could bounce back in our favor due to the causes of today's weakness being more temporary than permanent.  Naturally, this advice doesn't apply to folks who are purchasing or otherwise MUST pull the trigger on a loan soon.  In those cases, the nearness to all-time lows means we continue to favor locking over floating by default.