Mortgage Rates Slightly Higher, But Still In Good Shape

By: Matthew Graham •

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.

 See Rates from Lenders in Your Area

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).