Mortgage Rates Edge Back Down Toward Long-Term Lows

By: Matthew Graham •

Mortgage rates fell moderately today, helping them move part of the way back down toward their lowest levels in more than 3 months (seen back on Friday).  The average lender continues quoting rates that are roughly 3/8ths of a percentage point lower than the highs from early November.  

Last Friday's low rates marked the culmination of the strongest winning streak for rates of 2018.  We've been in a bit of a holding pattern since then, with next week's scheduled announcement from the Federal Reserve likely serving as the motivation for the next (and probably last) big wave of momentum for the year.  "Big wave" is more of a relative term, perhaps.  It may only end up being "big" relative to the current, fairly flat week leading up to it.


Loan Originator Perspective

Bonds continued hovering in recent ranges, posting small gains today.  I doubt we'll see any significant changes before next week's FOMC statement.  I'm locking loans closing within 30 days, for all but the most risk-craving clients.  -Ted Rood, Senior Originator

 See Rates from Lenders in Your Area


Today's Most Prevalent Rates

  • 30YR FIXED - 4.75%
  • FHA/VA - 4.25%
  • 15 YEAR FIXED - 4.25%
  • 5 YEAR ARMS -  4.375%-4.875% depending on the lender


Ongoing Lock/Float Considerations 

  • Headwinds that had plagued rates for most of the past 2 years are slowly dying down.  The rising rate environment could flare up again, and some headwinds remain in effect, but the broader tone has taken a more optimistic shift.

  • Highest rates in more than 7 years in Oct/Nov.  Lowest rates in more than 2 months as of early December

  • This is a bit of a crossroads.  We may look back at Oct/Nov and see a long-term ceiling, or we may look back at early December and see a temporary correction before more pain.  Either way, it's one of the more hopeful positions we've been in for several years.
  • Rates discussed refer to the most frequently-quoted, conforming, conventional 30yr fixed rate for top tier borrowers among average to well-priced lenders.  The rates generally assume little-to-no origination or discount except as noted when applicable.  Rates appearing on this page are "effective rates" that take day-to-day changes in upfront costs into consideration.