Mortgage Rates Slightly Higher, Still Facing Uncertainty

Today's much anticipated Summit in Europe sent  Mortgage Rates very slightly higher, but overall, the changes were minor, especially when compared to the speculation surrounding the event. But rates aren't out of the woods yet in terms of uncertainty and volatility.

Lenders are more stratified in their offerings today vs yesterday, but Best-Execution remains at 4.125% on average, but in some cases, your quote today could be an eighth higher.

Today's Rates: 

• BESTEXECUTION 30YR FIXED -   Mostly 4.125%.  Some 4.25's.
• FHA/VA - 3.75% /  3.875% healthy mix
• 15 YEAR FIXED -  Mostly 3.5%
• 5 YEAR ARMS -  low 3% range, huge variations from lender to lender.

Guidance: Unfortunately the "scariness" associated with events in Europe isn't quite over yet in terms of the volatility it could cause for mortgage rates.  There's more Euro-drama that could yet unfold, and the additional layer of risk from domestic economic data tomorrow and Friday.  We still feel optimistic about 4.25%'s ongoing ability to stick around, but the volatility is still scary enough to favor locking even though we'd probably be feeling more floaty without that volatility in place.  The possibility that rates get lower in spite of the increased disposition to lock is part of the frustration of  dealing with volatility.  But better safe than sorry. 

(Keep in mind, if a scenario is anything other than flawless in every way, a note rate can certainly be over 4.25% these days.  Read the disclaimer at the bottom of the post if you need more clarification).