Markets Push Mortgage Rates Back To The Edge

After improving for the first time
in almost two weeks yesterday, Mortgage Rates increased back to Wednesday’s
levels.

In many cases, this raises
best-execution an eighth of a point, but there continues to be a lot of
variation in pricing between lenders.

Today’s Rates: 

  • BESTEXECUTION 30YR FIXED –   4.25%.  A
    few lenders higher or lower by an eighth
  • FHA/VA
    Straddling 3.75 and 3.875%
  • 15 YEAR FIXED
    –  Solidly back to 3.5% today
  • 5 YEAR ARMS –  low
    to mid 3% range, variations from lender to lender.

Ongoing Guidance At 4.25%
Best-Execution Levels:
you can
approach the upcoming days in one of two ways: either rates will continue
higher, and the general range of rates would be 4.25-4.75% in terms of
Best-Execution, OR we’ve hit a wall of sorts, and can either bounce lower or
hold steady.  The more days you wait to determine this, the more money
you’ll lose if the first scenario plays out and the more you’d gain if the
second scenario plays out.  If rates don’t look like they’re holding
steady or improving by the end of this week, we’d be locking everything (and
fairly close to that sentiment already, but feel it’s at least one day too soon
to say for sure).

New Guidance: Here we are on Friday and I’m somewhat struck by the fact
that the “ongoing guidance” written several days ago might as well have been
written today.  Technically speaking,
rates are still holding steady at 4.25, but if things get just marginally worse
in the Secondary Mortgage Market, we’ll be in one of those “forced to lock at a
loss” scenarios.  If that sounds
particularly unpleasant to you, and you’re OK with today’s rate, locking now
isn’t a bad decision.  Markets certainly
aren’t making it easy.  Rates have been
pushed right to the very edge of the following spectrum.  As soon as it goes off the right hand side,
everything changes. 

Article source: http://www.mortgagenewsdaily.com/consumer_rates/232765.aspx

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